Contents Protocol, a content exchange based in South Korea, has announced that it will end its operations due to lack of regulatory uncertainty.
Accordingly, the company will return 26,877 Ethereum (ETH) worth nearly $7.5 million to holders of CPT token.
The company took the shutdown decision after less than 14 months from launching its operations.
In December 2018, the young startup had raised $10 million in ETH in an initial coin offering (ICO).
However, the company’s plan failed after the ICO, as it faced difficulty in persuading new customers.
The company said the biggest problems it encountered were the negative perception of blockchain and price volatility.
The project was merged with Watcha; the organization behind the development of the token. It mainly aimed at reimbursing the platform users with the token for interacting with the exchange.
“We will convert our remaining assets to ETH and distribute it on a pro-rata basis to CPT holders who have requested ETH compensation until a specified date,” the company stated.
Accordingly, the startup will undergo liquidation, and all of its CPT tokens will be brunt.
In a related context, the U.S. Securities and Exchange Commission (SEC) has ordered several crypto companies to return investor funds for launching ICOs without obtaining regulatory approvals.
Other Korean platforms shut down
It seems that Contents Protocol is not the first company to shut down as other South Korean companies have taken the same decision such as Bitberry due to blockchain industry uncertainty.
Cryptolydian reported that the Bitberry will end its services as of February 29 so users can withdraw their money. Thus, the company will scarp all withdrawal fees.
Founded in 2018, South Korea’s leading Crypto wallet Bitberry focuses on making the digital asset wallet platforms easy to use. It allows users to sign-in using a Kakao Talk ID – the leading messaging app in South Korea.
True Story, a blockchain run by Preethi Kasireddy, also ended its services and returned capital to investors.