The Due south Korean initial money offering project Contents Protocol volition return 26,877 Ether (ETH) ($7.5 million at press time) to holders of its CPT token. Both legal obstacles and business challenges were cited every bit reasons for the shutdown.

The details are visible on the project's modified homepage, first recorded on Feb. nineteen. Its public ICO ended in December 2022 and collected almost 7,000 ETH, which was its funding goal. The remaining 22,000 ETH came from individual token sales.

The projection was combined with a content platform adult by Watcha, the visitor behind the token. The thought was to reward platform users with the CPT token for interacting with the platform and giving upwards their data.

Notwithstanding, the platform failed to lift off. The team motivated it with "negative perception toward cryptocurrency," citing high volatility and a complex user feel. Finding other content platforms was also a challenge.

Finally, the team mentioned "uncertain legal and accounting risks" as another reason for the shutdown decision, which required "serious deliberation."

How the funds volition be returned

The squad revealed that information technology spent about $one.5 million in its year of operation, with most of information technology going into legal, and agency fees. Another 1,500 ETH is also categorized as bureau fees, likely a commission for conducting the ICO.

The team is left with almost 27,000 ETH, virtually 2,000 of which came from a successful ETH/Bitcoin (BTC) merchandise. The company initially sold 20,000 ETH for 500 BTC, and was able to buy more than 22,000 ETH for 490 BTC.

Contents Protocol balance sheet

Contents Protocol balance sheet. Source: contentsprotocol.io

The projection will return the funds to each CPT token holder based on a ratio of 0.84 ETH for 100,000 CPT. The effigy was calculated by measuring the circulating supply of CPT.

Information technology is worth noting that this is non a strict investor refund. The supply calculations include all circulating tokens, some of which were initially allocated to advisors, the squad and various community and compensation programs.

The team's portion is but a minor function of the whole, and is reported to have been entirely sold to the market. The counselor portion is less clear in that regard, and may still exist partially endemic by the original holders. The exact redemption procedure has nevertheless to exist revealed.

Contents Protocol did not immediately reply to a asking for comment. The article will be updated as more than data comes through.