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CONTENTS PROTOCOL ICO REVIEW – DECENTRALIZED CONTENT EXCHANGE PROTOCOL

Monday, December 10, 2018

Prоjесt Ovеrvіеw

Whаt does thе company/project do?

Contents Prоtосоl іѕ a content еxсhаngе рrоtосоl оn which Cоntеnt Prоvіdеrѕ, Platform, and Users can ѕuѕtаіnаblу соеxіѕt аnd соореrаtе.

Thе current trаdіtіоnаl рlаtfоrmѕ enjoy ѕtrоng growth due tо users соnѕumіng thе соntеnt produced bу соntеnt сrеаtоrѕ. Hоwеvеr, content сrеаtоrѕ оnlу rесеіvе a small роrtіоn оf thе іnсоmе thаt the platform earns. There’s аlѕо a lасk оf trаnѕраrеnсу іn whісh the rеvеnuе іѕ distributed tо dіffеrеnt ѕtаkеhоldеrѕ.

Contents Prоtосоl trу tо сhаngе thаt bу dіѕtrіbutіng оvеr 75% оf thе tоtаl lісеnѕе fee tо the соntеnt сrеаtоrѕ. Thе рlаtfоrm will оnlу keep 5-10% оf thе tоtаl іnсоmе, with the rеѕt bеіng dіѕtrіbutеd tо uѕеrѕ whо соnѕumе thе соntеnt. Thіѕ way, аll thе ѕtаkеhоldеrѕ bеnеfіt frоm thе grоwth оf thе ecosystem.

Thе іmаgе bеlоw ѕhоwѕ hоw Cоntеntѕ Prоtосоl wоrkѕ in a nutshell:


The рrоjесt will bе рrоvіdіng fiat ѕuрроrt to аіd іn adoption early оn, wіth a portion оf соntеnt ѕаlеѕ frоm thе uѕеr bеіng соnvеrtеd into CPT tоkеnѕ. 
Bеlоw іѕ аn interview with Cоntеnt Protocol’s Glоbаl Buѕіnеѕѕ Dеvеlореr, John Kim: 


How advanced is the project?

WATCHA is the company behind Contents Protocol. WATCHA, Inc. has been operating WATCHA, WATCHA PLAY, WATCHA MUSIC, and WATCHA WEBTOON for 6 years in Korea and Japan and currently has 3.8 million members.

It has also been awarded the "Best App of the Year" by either Apple or Google in each of the years since 2013. Users of the platform on average watch 18 hours of content per month. The app was awarded AppAnnie’s '2017 Top Apps Revenue in KR' for WATCHA PLAY’s ranking - No.19 for the combined total revenue on Apple App Store and Google Play.

WATCHA has licensing deals with 50 content providers including HBO, Disney, Sony Pictures, Fox Network, BBC, and others.

The first platform that integrates with Contents Protocol will be Watcha TV, which is going to be a transactional VOD (video on demand) service in Korea.

The content platform itself is still under development, but there is an agreement between them and WATCHA, an app with a rating of 4.7 and has 3.8 million users. On average, each user has provided 100 content rankings. 

Their roadmap is as follows: 
 
Q3 2018 - Transactional VOD service with WATCHA and 3rd parties. 
Q4 2018 - Subscription based VOD 
Q1 2019 - Subscription to Music Service 
Q2 2019 - Transactional Webtoon/Novel Service 
Q3 2019 - Transactional E-Book Service 
Q4 2019 - Integrated Subscription Service 

Below is an image showing a glimpse of how incentivization works in the app: 


What are the tokens used for and how can token value appreciate?

The tokens will have several functions on the platform. There will be two different tokens (CPT and CP Power) comprising the network. 
 
The two tokens will be convertible at a 1:1 ratio, with the CPT tokens being immediately transferable to CP Power tokens. However, there will be a 4-week lockup period for conversions from CP Power to CPT tokens. 
 
CPT tokens will be used as the transferable, payments token which will be able to be traded on exchanges, used (1) as payment for content creators, and (2) to purchase content by the users. It will also be used as a payout to users for their contributions to the network (i.e. referrals, reviews, etc). 
 
CP Powers will be used as a network staking token, and cannot be directly sold. When staked, it can provide various benefits to the users and content creators, such as free advertising, and boosting payouts to users for their network contributions. 
 
The image below shows the distribution breakdown of revenue generated on the Contents Protocol: 


The more CPT tokens are converted into CP Power, the less circulating supply there will be for CPT tokens. More users/content providers will stake CP Power if they derive real benefits from doing so, which generally happens when there is more content and usage of the Contents Protocol platform. 
 
Therefore, the more usage and content the platform has, the more users will want to hold onto CP Power tokens, and the more valuable CPT tokens should be. 

Details Token
  • Project name: Contents Protocol 
  • Token symbol: CPT 
  • Website: https://contentsprotocol.io 
  • Whitepaper: https://drive.google.com/file/d/1F-iiyB8Uwx0poMvaYYpTqWof3_jc5G3M/view (one page) 
  • Hard cap: 40,000 ether (ICO contributors own 30% of total token supply) 
  • Conversion rate: TBA 
  • Maximum market cap at ICO on a fully diluted basis: $72 million assuming current ether price of $540 
  • Bonus structure: TBA 
  • Private sale/whitelist: Private sale ongoing 
  • ERC20 token: Yes 
  • Countries excluded: TBA 
  • Timeline: TBA (Please refer to Content Protocol's website for the most up-to-date information) 
  • Token distribution date: TBA 

Team 

There is a total of 34 team members with the following being the core: 
 
Taehoon Park, CEO, and co-founder – the CEO of WATCHA since 2011. Previously game programmer at Nexon. 
 
Alex Jihyun Won, COO, and co-founder – COO of WATCHA since 2011. Previously Co-Founder at Onepiece. 
 
Teddy Taehyun Lee, Lead Mobile Developer - Has a degree in electrical engineering, and was a developer on MapleStory for the Taiwan and HK branches. 
 
Buzz Insoo Jung, Lead Backend Developer - Degree in electrical engineering, and 13 years’ experience in server developer positions. 
 
The team also has a suite of advisors including Teddy Zee, Former EVP of Columbia Pictures and SVP or Paramount Pictures, Simon Kim, CEO of Hashed, Shuan Djie, Co-founder of DigixGlobal, Lim Hong Zhuang, CEO of XSQ, Jun Kim, Partner of Kakao Ventures, and more. 


Investors of the project include Hashed, Kakao Ventures, and XSQ. 

Opportunities 
  • Users will be able to earn tokens for performing actions on the platform (rating, sharing, etc.), something that they cannot do prior to the shift to blockchain. This may actually attract more users to use the platform. 
  • WATCHA is an established company with a large market share in the Korean VOD market. Very few blockchain projects have this kind of adoption right off the bat. 
  • The VOD market is large and rapidly growing. According to PricewaterhouseCoopers, the global VOD market grew by 3.5 times from 2012 to 2017 and reached $22.3 billion. 
  • The staking mechanism for both users and content providers would encourage holding of the CP Power tokens, effectively reducing the circulating supply of CPT tokens and creating a support for token prices. 
Conclusion 

Our thoughts of the tokens for short term and long term are as follows: 
 
For short-term holding: A 
 
The token metrics are reasonable with somewhat long lockup for presale participants. With the strong and growing user base of WATCHA, we believe there should be plenty of unmet demand after the tokens are tradable. 
 
For long-term holding: A 
 
The target users for Contents Protocol are the content consumers and producers, which are mostly millennial from South Korea and Japan. They are the most receptive of the use of cryptocurrency. Coupled with the large user base of WATCHA, we believe that Contents Protocol has a good chance to succeed. 

More Information


Author: indopool
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