Korea’s Kakao Corp. Considers Private Placement to Raise Funds for Blockchain Subsidiary

South Korea’s messaging app operator Kakao Corp. is contemplating providing a personal placement to entice buyers to develop their blockchain subsidiary, Bloomberg reports right this moment, June 28.

Kakao Corporation’s blockchain initiative, the Tokyo-based Ground X, was announced on the finish of March as a part of the messaging app operator’s new Kakao 3.zero marketing strategy aimed on the wider Asian markets. Bloomberg writes that Ground X goals to launch a check model in September, with the blockchain platform going stay by the top of 2018.

Jason Han, Ground X’s CEO, advised Bloomberg the blockchain platform could also be contemplating getting capital subsequent month from collaboration with consumer-service firms used for gaming and content material sharing, however added that no agency plans have been finalized.

In phrases of what Ground X will encompass, Han predicts the addition of companies like Steemit, on this case the place customers are rewarded for unique content material with cryptocurrency. According to Han, the companies that Ground X will provide might be “more practical” than what different gamers provide within the blockchain area:

“The biggest problem with blockchain right now is that there isn’t a single service that an average person would use.”

Ground X’s location in Japan was chosen due to regulatory causes, Han mentioned, as Initial Coin Offerings (ICOs) aren’t authorized in South Korea, the place most of Korean chat app Kakao’s 50 million month-to-month customers are primarily based. Han notes that though Ground X and Kakao will work collectively, there are at the moment no quick plans to put the Kakao chat app on the blockchain.

Pavel Durov’s widespread messaging app, Telegram, additionally expanded into the crypto sector this yr, cancelling their plans to launch a public ICO after their two accredited investor-only pre-ICO rounds raised a mixed complete of $1.7 billion.

Han acknowledged to Bloomberg that whereas it was true that making a blockchain platform is now not something new, “we aren’t late here:”

“We know we’re not frontrunners of blockchain technology. But the industry is still developing.”

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