In South Korea, one of the largest chat application Kakao is seeking to expand into blockchain technology with what’s being called a “reverse ICO,” according to news sources.
According to the news platform The Bell, on March 2, Kakao raised over $1 billion dollars for artificial intelligence investment, and will also launch it calls the “Kakao coin.”
Going by the Telegram ICO as its guidelines, Kakao will apparently look for investment opportunities with companies that specialize in blockchain technology.
Telegram’s ICO, which will set to raise over $1.6 billion in presales, is one such as example of a ‘reverse’ ICO, which means that the company uses a digital token scale to accumulate additional funds.
ICO Ban In Korea
Despite the fact that there is an ICO ban in the Korea, the initiative may raise some eyebrows among regulators, yet Kakao has not yet confirmed speculations about its intentions.
Regardless, if the sale goes ahead as planned, then it could cause a trend for South Korea companies.
Lawmakers in Seoul continue to move forward with reforms in the cryptocurrency industry. Numerous avenues remain on the table for companies like Kakao, which is thanks to Korea’s re-enactment of anonymous trading on Jan. 30, which includes a method for crypto exchanges similar to those used in New York and Tokyo.