Popular content sharing platform Content Protocol has announced that it was shutting down its services.
The firm made this announcement via an official blog post. Blaming its decision on regulatory uncertainty and general hostility to cryptocurrencies. The exchange which made the sum of $10 million in its Initial Coin Offering (ICO) disclosed that it would be refunding the funds to its clients.
The announcement which reads ‘Announcement of Company Liquidation and Asset Distribution’ gave in-depth details on how the refund process will be done. The startup will be given out 26877.68 ETH ($7.5 million) back to investors. According to Contents Protocol, the exchange over the course of its lifetime used $1.45millin for business operations.
Users with CPT native tokens will also receive a refund. For every 100,000 CPT users will get 0.84 ETH. All remaining CPT, alongside those retrieved, will be destroyed during the liquidation process.
More on Content Protocol
Designed to keep content providers informed on trending contents, the project was expected to be a spectacular one. It operated by gathering and selling analyzed data to content producers. Keeping them up to date with recent content trends. The startup got most of the data it sold from WATCHA and WATCHAPLAY.
Content Protocol, however, disclosed that it met with a lot of closed doors and impenetrable walls during the course of the business. Adding that there was a generally negative perception of the cryptocurrency business. Especially in terms of price volatility, poor user experience, and even poorer crypto regulations. Adding that business was slow and there are no signs of it getting better in the near future.
The exchange also pointed out the lax attitude of regulatory bodies. Further adding that their negligence is having a negative effect on the future of cryptocurrency.
The startup has been in business for barely 14 months before announcing the shutdown.
According to the platform, the major issue came from negative inclinations towards the crypto industry. Many institutional and individuals we’re not willing to invest in the business. Hence the fold-up announcement.
Many crypto exchanges have had to close down all for a variety of reasons. Just like Content Protocol, Huobi US claimed its shutdown was due to low clientele volume. With exchanges like XRParrot and Koinex blaming unfavorable regulations as the reason for its shut down.