As metaverse projects soar, mainstay Korean blockchain Klaytn (KLAY) positioned itself to capitalize on the trend. Now based out of Singapore, the platform – launched in 2019 – reinvented itself to provide the perfect ecosystem for new projects looking to develop metaverse products. Recently, this came in the form of partnering with Animal Concerts to provide virtual concerts and NFTs associated with some of K-Pops biggest stars. The coronavirus pandemic fundamentally changed how the world consumes entertainment, and virtual experiences could mitigate some potential dangers.
Klaytn is a subsidiary of KakaoCorp, a major South Korean technology and entertainment conglomerate. Among other products, Kakao is responsible for KakaoTalk – one of the most popular messaging apps in use in South Korea. While potentially unfamiliar to users in the west, the messaging app boasts over 50 million active users. While a financial vehicle on the surface, KLAY may soon be the foundation of Kakao’s entertainment arm.
What does Klaytn do Differently?
While many blockchain companies are clawing their way into the metaverse industry, Klaytn comes with a variety of advantages. First and foremost, the backing of KakaoCorp puts Klaytn leagues ahead of the independent competition. The financial capital of a major, traditional business allows Klaytn to take risks that could easily bankrupt other cryptocurrency companies.
It also allows Klaytn to establish an ecosystem that new developers will actively want to participate in. Incubation and acceleration programs for projects made within the Klaytn platform encourage growth as well as adoption. This is in addition to the development support and suite of tools Klaytn offers.
The Korean Cryptocurrency Market
Meanwhile, there is a reason that Klaytn established an international headquarters in Singapore. While South Korea started as a veritable mecca for cryptocurrency, legislation over the last several years choked out the industry. New laws forced exchanges to apply for licensing, potentially preventing them from operating at all.
Even those that obtained licenses suffered unexpected setbacks. Bithumb forced users to register with additional KYC or face an inability to withdraw funds. At the same time, cryptocurrency features prominently in the political debate within South Korea – allowing advocates to potentially gain a foothold over time.