South Korea’s Kakao Subsidiary ‘Clay’ Blockchain Project To Raise $300 Million In Private Token Sale
Kakao’s Subsidiary $300 Million Private Token Sale
South Korean company Kakao’s subsidiary Ground X is looking to raise $300 million, and to do so, it is turning toward a token sale. The news of the company’s interest to complete such a sale was released by Hani.
Hani reported that Kakao is selling its KLAY token, which is part of the Klatyn platform. Even though every aspect of the sale points to a token sale, Kakao has stated that “it’s not an investment recruitment for the general public.” This makes it a bit different than a traditional initial coin offering and for good reason. Initial coin offerings are unregulated and banned in South Korea.
The issue that arises now is whether the South Korean government will allow the sale due to the minor difference. Ground X’s CEO Jason Han stated that the project is looking for “capital and business alliances with consumer-service companies.”
The sale is likely to go forward. Ground X was established in Japan and the size of the investment is currently unknown. Further, the company has designated the sale as a “consultation with our partners,” limiting the type of ICO that it is. There have also been some suggestion that a Chinese venture firm is interested in participating in the sale. Hani sources have reported,
“The target amount is USD 300 million and Kakao is very close to secure its target. A China-based venture capital executive held a meeting with Ground X in September and, even at the time, Ground X was planning to raise USD 300 million.”
One of Kakao’s most recent partnerships is with Terra. The partnership is a component of the Ground X project that will create a seamless blockchain payment system. Ground X has also created a partnership with Infrastructure-as-a-Service (IaaS) called Orbs.
Ultimately, the news concerning Kakao and its subsidiary seems to be surprising, giving the decline of the ICO market.