South Korea-based crypto startup Contents Protocol Team that raised 29,334 ETH in an ICO worth $8.15 million in today’s price announced to shut down. The company said that it is shutting down because of a lack of business prospects and continued regulatory uncertainty. Earlier, several crypto companies shut down in Europe because of regulatory issues.
South Korean startup’s proposed idea did not seem to work.
Crypto startup Protocols Content Team aimed to collect customer data from local content platforms like Watcha, a Korean movie rating platform, and Watcha Play, by rewarding the platform and their users with their native token CPT. Watcha is a local online movie streaming service like Netflix. The platform aimed to sell the collected data to content providers for creating a better content production ecosystem, but the idea did not turn out to be a hit.
Regulatory uncertainty also played a role in the fallout.
The company announced to close down its services and refund investors their money on Wednesday. The startup in the announcement said that there were numerous difficulties in encouraging participation from content consumers because of their negative perception towards cryptocurrencies in general. According to the statement, regulatory uncertainty also played a role in the startup’s fallout. Earlier in Europe, several crypto companies announced to shut down their services after a new money laundering law came into effect.