Webtoon platform Kakao Piccoma buys 50% of Japan’s Sakura Exchange

April 6, 2022 Coin Telegraph

Acquisition

It follows a history of crypto projects from Kakao, including its Ground X blockchain subsidiary, which won the South Korean Central Banks’ CBDC tender last year.

Kakao Piccoma, a Japanese digital comics' subscription service and subsidiary of the Korean internet company Kakao, has purchased a 50% controlling stake in the Japanese cryptocurrency exchange, Sakura Exchange Bitcoin (SEBC).

That makes Kakao its largest shareholder and the deal is also expected to help Kakao offer cryptocurrency services on its Piccoma webtoon platform, and expand aggresively into Web3, according to local media reports. Piccoma is the largest webtoon platform in Japan, and in 2021 its app marked $1 billion in consumer spend after six years in the Japanese market.

The amount Kakao paid for its stake in the exchange has not been disclosed.

SEBC is one of only 30 crypto-asset exchanges registered in Japan with the Financial Services Agency (FSA) and lists 11 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, and Litecoin (LTC).

In mid-March, Kakao’s founder Kim Beom-soo, also known as Brian Kim, stepped down from the board of directors to focus on the company’s affiliate brands, especially on the Kakao Piccoma brand in Japan. The acquisition of SEBC is the first merger and acquisition move from Kakao since Kim resigned.

Kakao has showed interest in the crypto space before. In August last year Kakao launched two blockchain companies in Singapore, the Klaytn Foundation, a non-profit organization and Krust, a global accelerator for blockchain technology adoption.

Kakao also runs a specialized blockchain subsidiary called Ground X, which won a central bank digital currency (CBDC) tender from the Bank of Korea in July 2021, becoming the chief technology supplier for blockchain-based digital won simulations.

Prior, the company also was an early investor in the Upbit exchange, the first crypto exchange to file with South Korea’s financial regulators.

Klaytn token down 15% in a month, but network’s TVL shows resilience

March 16, 2022 Coin Telegraph

Arbitrum

KLAY's market cap is roughly 70% below its all-time high, but the network's TVL and DApp data hint that the service-oriented blockchain might bounce from its lows.

Klaytn (KLAY) had a promising start in March 2021, reaching an impressive $11 billion market capitalization following its debut. However, investors have exaggerated their expectations as the token's current total value stands at $3 billion, down roughly 70%.

*KLAY/USD on Binance. Source: TradingView*

Although not as well known as the leading smart contract blockchains, Klaytn remains a top-35 token by capitalization rank. Moreover, the network holds $1.2 billion worth of deposits locked on smart contracts. Capital locked on smart contracts is known in the industry as total value locked, or TVL.

Real use cases and strong backing

Klaytn is a flexible modular network architecture created by Kakao, a publicly-traded South Korean internet giant. The Asian tech group's shares are valued at $36 billion, backed by diverse applications in traditional markets, including games, chat, taxi and rides, financial services, and a venture arm.

Businesses can customize and operate their own service-oriented blockchains built atop Klaytn architecture. These autonomously operated subnetworks are called Service Chains and are fully customizable.

The network is fully functional, offering decentralized applications (dApp) ranging from DEX exchanges, nonfungible token (NFT) marketplaces, social networks, collateralized loans, and games. For instance, KlaySwap, Klaytn's leading dApp, holds $746 million in TVL and 19,840 active addresses over the past week.

According to Klaytn's blog, the network is gearing up its infrastructure to provide services for the gaming and metaverse sectors. Initiatives include launching an open-source tools developer package that incorporates layer-2 solutions and adding direct support to Ethereum Virtual Machine (EVM) applications. Additional services include providing management and financial support for projects with high potential.

Klaytn's roadmap includes higher scalability by leveraging layer-2 service chains, additional interoperability bridges with other blockchains, and integrating an Interplanetary File System (IPFS) gateway for decentralized storage.

Klaytn smart contracts deposits jumped 24%

Despite KLAY's negative 15% performance over the last 30 days, the network's TVL increased by 24% in the same period. As a comparison, Arbitrum scaling solution stalled at $1.7 billion, and Polygon decreased to $3.35 billion from $4.65 billion on Feb. 15.

*Klaytn Total Value Locked, USD. Source: DefiLlama*

In dollar terms, Klaytn's current TVL of $1.2 billion is 13% below its $1.35 billion peak in January 2022. Yet, these figures represent less than 2% of the aggregate TVL (excluding Ethereum), according to DeFi Llama data.

In terms of recent developments, on Feb. 17, Klaytn joined the Blockchain Game Alliance, which encourages the development of standards and sharing of best practices in the decentralizing gaming sector. The initiative also aims to increase the public understanding and awareness of blockchain games.

To confirm whether Klaytn's TVL growth is backed by increased adoption, one should analyze DApp usage metrics. Some DApps, such as games and collectibles, do not require large deposits, so the TVL metric is irrelevant in those cases.

*Klaytn DApps 30-day usage metrics. Source: DappRadar*

As shown by DappRadar, on March 15 the number of Klaytn network addresses interacting with decentralized applications decreased by 5% versus the previous month.

Even though Klaytn's TVL has increased by 24%, the network lacks a more substantial user base growth to support further KLAY token price momentum. Still, KLAYswap, the leading Dapp, presented a decent 39,090 active addresses over the past 30 days.

The above data suggests that Klaytn has found a niche within the decentralized application segment. If the project's proposed features come to fruition, KLAY's token price will likely hold $1.05 as medium-term support and present a decent upside.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

South Korea’s leading blockchain facing greater competition in NFT market

November 19, 2021 Coin Telegraph

Coin Telegraph

South Korean blockchain platform Klaytn may see its domestic dominance dwindle if it cannot keep pace with competitors such as Polygon.

South Korea’s nonfungible token (NFT) space has rapidly expanded throughout 2021 led by the growth of crypto and NFT services offered by Kakao, but competitors are entering the fray.

The NFT market in South Korea could be on a path for even more expansion following the Nov. 5 government ruling that NFT purchases will not incur taxes.

Klaytn, the blockchain developed by Korean tech startups Kakao and GroundX, is the obvious first choice for Koreans searching for a network to buy and sell NFT’s.

Klaytn’s market dominance in Korea is unrivaled as KakaoTalk, Kakao’s flagship products suite, has over 52 million active users and integrates Klaytn’s Klip crypto wallet directly into its mobile app.

Sangdi, CEO from Spoon, an NFT creator platform based in South Korea, told Cointelegraph that, “If KakaoTalk pushes them, ordinary people who have not encountered cryptos will become familiar with them and [they will] accept NFTs as a culture.”

Additionally, Klaytn is one of only three blockchains supported by the OpenSea NFT marketplace. Kakao’s own Krafterspace NFT minting service has posted over 37,000 NFTs for sale on OpenSea, and almost 7,000 of them have already been purchasedt.

Korean NFT creators are aware that the platform on Klaytn has been tailor-made for Korean collectors, its target market. Sangdi added that “we are aiming for the Korean market first, then the global market. I think currently Klaytn will help us focus on Korea.”

As South Korean NFT collectors become more accustomed to global NFT trends, alternatives such as Ethereum layer two scaling network Polygon present a potential threat to Klaytn’s dominance.

Polygon is the second of three networks supported by OpenSea, making it a relatively familiar platform for Korean NFT collectors. It also supports a robust NFT market which some Korean projects find more suitable for their global business model.

Jisoon Lim, CEO of 3PM, a music-centric NFT curation and publishing platform, deployed the platform on Polygon instead of Klaytn. Despite being based in Korea, Lim explained to Cointelegraph that Polygon was the optimal choice for the project.

Korean NFT enthusiast Karl Hyun also feels that Polygon is better suited for the NFT market than Klaytn. Although his favorite collections are not based in South Korea, he feels that Ethereum-based layer two solutions are best to help increase the global reach of NFTs.

Speaking to Cointelegraph, he said, “Polygon as a layer two operates best by being integrated with Ethereum, but isn’t Klaytn closer to an independent side chain?” before adding, “Since Polygon is based on Ethereum, the best way to increase scalability of NFTs while minimizing centralization is to go to Polygon.”

Kakao’s involvement in the blockchain space also extends into VC investing and it has a long-standing partnership with Dunamu, owner of the Korean Upbit exchange.

Dunamu is preparing to launch an NFT platform with HYBE, the entertainment company behind popular Kpop group BTS. Kakao is also planning an NFT marketplace and metaverse named Kakao Games.

As it stands, Kakao’s foothold could be held back by its slow-paced global scaling efforts. However, Sangdi said that concerns about globalization are a temporary hurdle, adding that the company wants to become a global brand.

Korean internet giant Kakao expands blockchain presence to Singapore

August 16, 2021 Coin Telegraph

Adoption

Kakao wants to keep up with the enterprise blockchain competition in Asia as it eyes expansion to Singapore.

Singapore is reportedly the next port of call for Kakao’s globalization agenda for its legacy blockchain platform Klatyn.

According to a report by The Korea Herald on Monday, Kakao has established two new blockchain-based entities — the Klatyn Foundation and Krust — in the city-state. The Klatyn Foundation is a non-profit organization while Krust serves as a global accelerator for blockchain technology adoption.

Kakao plans to use both entities to foster broad-based penetration of its Klatyn blockchain project in Singapore. Stating its mission during the launch earlier in August, the Kakao Foundation said that it will work “proactively and systematically” to expand the Klatyn network.

“We will actively invest our human as well as financial resources in developers and businesses of the blockchain world to accelerate the growth of our ecosystem and the development of our technology,” the foundation added.

The Singapore expansion is backed by Kakao’s $300 million blockchain development war chest that also includes an improvement reserve fund used for service maintenance purposes.

Kakao, like other major South Korean conglomerates, is bullish on blockchain technology. Indeed, when KT Corporation announced plans for a digital currency project in Busan back in December 2019, the news meant that every major conglomerate in South Korea was involved in blockchain-based ventures.

Closer to home, Kakao recently submitted a bid to pilot South Korea’s central bank digital currency project, as reported by Cointelegraph. Back in April, blockchain development outfit ConsenSys began developing a private version of Kakao’s Klatyn network in preparation for a possible central bank digital currency (CBDC) pilot.

The Bank of Korea is expected to select a technology partner for the CBDC pilot later in August. Kakao has also reportedly partnered with 32 Korean and foreign firms as part of the Klatyn Governance Council.

For Kakao, the goal is reportedly one of keeping pace with other major Asian conglomerates like Naver in the Asia Pacific blockchain theater. Naver is also expanding its Line blockchain project not only in Japan but also in Southeast Asia.

Kakao

Real use cases and strong backing

Klaytn smart contracts deposits jumped 24%

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