The South Korean Blockchain Backed By Messaging Giant Kakao Raised $90M in Private Sale

Crypto subsidiary of Kakao Corp. raised $90 million in private sale, yet there is more to come. On March 12, today, it is planning to raised the same sum of money to launch its blockchain platform in June 2019.

Ground X is a crypto unit which was formed back in May 2018 to develop a blockchain-powered platform. Some representatives say that the initial plan was by creating such a platform to integrate blockchain services into existing internet offering provided by Kakao, including messaging app Kakao Talk.

The CEO of Ground X, Jason Han, gave a small interview regarding to the private sale round. He said that the sale reached its target sum despite the plunge of cryptocurrency market in 2018. He also stated that companies like IDG Capital, Cresendo Equity Partners and Translink Capital had participated in the round.

The Tokyo-based Ground X has launched a test network, called Klaytn, not so long ago. It has teamed up with 26 different companies, including video game developer Wemade, video streaming platform Watcha, Chinese travel agency Zanadu. These companies have millions of active users every day. The company also plans to work with the Seoul Digital Foundation to implement blockchain in social and public services.

Han previously talked about blockchain decentralization, where he claimed:

“The token economy is a business model that no one could have imagined before. Until now, Kakao has only operated in Korea, but through blockchain we could expand into the global market. That means taking a portion of the profits we earn as an intermediary and using it to expand our market by sharing it with users.”

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