Crypto Subsidiary of South Korean Kakao Corp. Plans another $90 Million ICO

Korean Internet giant kakao blockchain subsidiary

Ground X, the crypto firm that emanated from South Korean internet giant Kakao Corp will conduct another mega ICO after it raised $90 million in its initial token sale, Bloomberg reports. On Sunday March 11, the finance news site wrote that Kakao’s Ground X will commence the second ICO this Tuesday March 12, 2019 ahead of the proposed launch of its blockchain platform known as Klaytn.

As Smartereum reported last March, Kakao announced that it was creating a blockchain subsidiary to venture into cryptocurrencies and launch its own digital asset known as Kakao Coin. According to a report, the Kakao Coin will be used to drive payments in its messaging app and will also be integrated into the company’s applications like KakaoTalk, Kakao Driver, or KakaoGames.”

Since the regulations in South Korea banned public token sales, Kakao attempted to conduct its ICO in Switzerland but that did not work after the Financial Services Commission (FSC) reportedly countered its plans. Kakao came out to deny rumors of fake ICOs conducted using its name and Kakao Coin during this period.

Last December, however, Kakao reportedly began a private Initial Coin Offering (ICO) for its own cryptocurrency through Japan-based Ground X. The company was seeking around 300 million from investors according to local reports at the time.

Bloomberg now claims that the private round successfully raised $90 million from Venture capital and private equity funds including IDG Capital, Cresendo Equity Partners, and Translink Capital. This information was released by the CEO of Ground X, Jason Han.

More About Kakao’s Ground X and Klatyn Blockchain

Ground X which lists offices in South Korea and Japan describes itself as a subsidiary of Kakao says its mission is to achieve mass adoption of blockchain-empowered services as to substantiate the value and utility of blockchain technology.

The company which has about 65 staff on its books is “developing a scalable blockchain platform with tangible and practical blockchain services.”

Klatyn, is a global public blockchain providing user-friendly UX/UI and enterprise-friendly Developer Experience (DX) environment for developers to create blockchain services.

About 27 companies including Kakao are planning to develop applications that will run on the Klatyn blockchain. “There’s going to be a wide spectrum of services […] we’re continuing to have conversations with Kakao,” Han revealed. Other companies include popular South Korea game developer Wemade Entertainment Co., video-streaming service operator Watcha Inc., Chinese travel agency Zanadu and others which have more than a million daily active users.

The platform is set to launch in June after delays with the development which moved it from the original launch target of 2018.

Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.


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