Message app firm is considering a private placement next month to raise funds from partners interested in helping to build its crypto platform
Ground X Corp., a blockchain subsidiary of Kakao Corp., may initially seek capital and business alliances with consumer-service companies. Ground X is targeting firms that, like Kakao, have internet or mobile services that could be offered over a blockchain platform. Plans are still subject to change said the company’s spokesperson.
Build an efficient platform
Kakao set up Ground X in Tokyo in March as the South Korean company sought to jump on the blockchain bandwagon, aiming to build a platform in Asia powered by the technology that can take on the likes of Ethereum. Kakao, whose popular chat app has 50 million monthly users predominantly in South Korea, hopes to use this to expand its business overseas.
The goal is to make blockchain more accessible to people who aren’t experts in the technology, he said. That will be made possible by cooperating with companies running consumer applications that are already widely used for content-sharing and gaming.
Practical service and potential
The biggest problem with blockchain right now is that there isn’t a single service that an average person would use. The company hopes to provide services that are going to be more practical.
Kakao is far from a frontrunner when it comes to blockchain. Many others have already started to explore the technology, while some firms have seen their stock price surge just because they put the word blockchain in their names. Some commentators say blockchain has the potential to be much more influential than cryptocurrencies themselves.
But one thing the firm is not worried about being behind the curve on adopting blockchain. They aren’t late here. They know they not frontrunners of blockchain technology. But the industry is still developing.