Business

K-pop music label partners with crypto exchange on BTS digital antiques

The music label behind K-pop super stars BTS has stated it prepares to partner with South Korea’s greatest crypto exchange operator to offer non-fungible tokens connected to the kid band and produce a brand-new earnings stream.

Hybe on Thursday stated in a regulative filing that it had actually accepted purchase a 2.5 percent stake in Dunamu, the operator of the Upbit crypto exchange, for Won500bn ($423m) while Dunamu would purchase Won700bn of recently provided Hybe shares or a 5.6 percent stake in Hybe.

The music firm stated it would provide photo cards of BTS members as NFTs, or digital antiques protected by blockchain, on Upbit, which represented almost 90 percent of South Korea’s cryptocurrency trading volume.

Hybe creator Bang Si-hyuk is looking for to broaden his business beyond music development and star management into a worldwide home entertainment platform. He informed an online instruction that the objective of NFT image cards was to supply safe and secure card ownership, “allowing them to be collected, exchanged and displayed in a global fan community where instead of a single photo, it can be turned into a digital photo card with moving images and sound”.

The relocation increased Hybe shares 2.89 percent on Thursday, as the business likewise revealed strategies to release brand-new web comics and web books including BTS members and a computer game co-produced by the K-pop experience.

Hybe stated it was looking for a “boundless” organization design by producing varied material utilizing its music copyright. “Although we are based on music, we are preparing for diverse works without being constrained by specific business areas,” stated Park Ji-won, the business’s president.

Original stories in the kind of web animations and web books would be launched through Naver Webtoon’s platform in January while a BTS video game, established together with the seven-member band, would be released in the very first half of next year.

The show business is quickly embracing blockchain innovation as the market has a hard time to secure copyright. The increase of streaming services has actually made it simpler for fans to gain access to music however unauthorised copying of tunes has actually likewise triggered problems for artists.

BTS will be among the greatest brand names to delve into the nascent trading organization based upon blockchain innovation.

Upbit has actually endured a series of regulative procedures to become among South Korea’s dominant crypto exchanges. It is among the nation’s 4 exchanges that are enabled to provide won-based crypto trading after the nation closed down lots of little exchanges.

Hybe’s newest relocation comes as regulators in Seoul think about the possibility of taxing benefit from digital properties, such as NFTs. The federal government is preparing to enforce a 20 percent tax on capital gains of more than Won2.5m from cryptocurrency trading, beginning next year.

Albert Yong, handling partner at Petra Capital Management, a Seoul-based hedge fund investing in the home entertainment sector, stated there would be need for NFTs based upon BTS since of its strong fan base.

But making business sustainable in the longer term would be an obstacle. “The popularity of BTS will not last for ever,” Mr Yong stated.

 

Blake

News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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