SM Entertainment is one of Korea’s best pop talent companies, now planning to launch its in house blockchain initiative. The initiative is going to take the form of a native cryptocurrency, given the protests from the shareholders and a plunge in falling stock price.
The technology director of the company, Joo Sang-Sik, CT-AI Labs, spoke regarding the decision at the Upbit Developer Conference on 4th of September, according to a report.
Joo spoke that the firm’s ambition is to create a blockchain network to facilitate the capabilities of the audience to make a responsive relationship with the landscape of entertainment. This has to be made possible through investments in artists’ portfolio via cryptocurrencies.
Joo also said that they are still discussing the initiative with associates who are entitled to the project completion so the details will not be yet disclosed.
SM Entertainment expects the cryptocurrency platform to exist together with the physical and crypto world. Joo also spoke about the roles of blockchain that can be projected to play in the entertainment industry. He said:
Blockchain from the entertainment standpoint is a decentralized entertainment entity.
He also gave a few technical details about the project as well as the technology and said that the company is intending to employ the hypothesis of public as well as private blockchains.
The entertainment business as it stands utilizes inefficient settlement and payment systems – issues that blockchain could help address.
The firm is on its way to becoming one of Korea’s essential exports. The company has been in operation since 1995, founded by Lee Soo-man, who is also known as the Cultural President.
SM Entertainment has also been listed on the (KSE) Korean stock exchange and claims a capitalization of about $600m. It also underwent management revamping a while ago, as shareholders were wary about the finance operations and its crucial business decision. It also dropped 43% in its stock value since November last year.
It is to be noted that SM Entertainment isn’t the first one to promote using blockchain in an industry like K-pop. Last year, the news of the release of a platform, Ko-fun was on the air that facilitated all the crypto transactions linked to K-pop-related on a secure blockchain.
The news says, the company eyes blockchain as a long term partner and plans to take up one stage at a time to get the desired outcomes. As stated earlier, several smaller South Korean firms tried to derive vague results by linking the now enticing ecosystem of K-pop for cryptocurrencies.
Although, with the recent move, SM might become the first K-pop company in Korea to start a bold venture in cryptocurrency.