Korea’s SM Entertainment to Inaugurate Its Digital Currency and Blockchain Network
SM Entertainment is among the top three pop talent companies in Korea. The company is planning on a move to have a blockchain network of its own. It will also see the firm have its cryptocurrency.
It will be achieved after partnering with CTIA Labs, which is a tech organization. SM Entertainment is currently battling falling stock price and a revolt from shareholders. The announcement of the plans for its cryptocurrency was made by the company's technology department director Joo Sang-Sik.
He broke the news on September 4 at Incheon in the Upbit Developer Conference. The director said that SM entertainment was looking to create a blockchain network that would allow stakeholders more interactions in the entertainment sector. They would now invest in artistic projects via cryptocurrencies.
The company is aiming to make good use of private and public blockchain concepts, and they are looking for potential prospects to assist in growing the network. The blockchain platform is expected to bridge the gap between the virtual and physical world.
According to the director, the entertainment sector operates on ineffective payment and settlement systems, and these are issues that blockchain will efficiently address.
Major Player in The Industry
SM Entertainment is a crucial player in the K-pop world and seemingly becoming Korea's most valuable exports. It was established in 1995 by the “President of Culture” Lee Soo-man. The main acts include EXO, Girls' Generation and Red Velvet.
SM entertainment is already listed on the stock exchange market for Korea, and the firm has annual revenue of around $350 million. That is according to Crunchbase company data website. The organization is also estimated to have a capitalization of about $600 million.
In recent times the company reshuffled its management as shareholders were concerned about its finances and business decisions made. It is because SM entertainment stock price had gone down by 43 percent from November.
Blockchain technology is seen and expected to work wonders in the music industry. The platform will disintermediate the music world and give the artists and fans direct economic interaction. It, therefore, means that everyone will get a larger share of the value they intend to acquire.
SM entertainment is, however, not the only firm that has thought of this approach. Ko-fun was a platform launched to enable crypto transactions concerning K-pop activities in 2018. The initial strategy was to have coins for discrete acts.