Kakao Crypto Division Raises $90 Million in Private ICO

Kakao Corp.’s crypto unit raised $90 million through a private coin offering and is planning another round to target a similar amount starting on March 12 as it moves forward to launch its blockchain platform in June.

The Kakao Corporation has a host of popular web-based apps including the wildly popular Kakao Talk messaging service, Kakao operates for transportation services and rides requests and KakaoGame connects tens of millions of mobile game users every day.

The Chief Executive Officer of Kakao’s Ground X Corp blockchain unit, Jason Han, told that the initial funding round from October to December, despite the Bitcoin [ BTC ] price drop, was able to meet its target. Jason Han said the funding round was attended by venture and private equity funds including Translink Captial IDG Capital, and Crescendo Equity Partners.

The South Korean message application envisages one of its services being added to the platform. However, the CEO explains that no decisions have been taken yet. The company’s cryptocurrency unit is based in Tokyo and will complete its platform known as Klaytn with services such as games and third-party travel apps. With an integrated blockchain and digital currency, the Klaytn platform has been developed mainly towards the gaming and service sectors.

Ground X has partnered with 26 companies to run their platform applications, said, Han. Amongst them is Wemade Entertainment Co., Korea’s famous developer of games, video Streaming Service Operator, Watcha Inc. According to Jason Han, some companies run applications with millions of active daily users.

Han says Ground X will be looking to find a midfield between existing mobile and high – end blockchain services. He considers gaming apps to be the most tractable on a platform. According to Han, Ground X is aiming to expand its user base to 10 million accounts by one year, based on the popularity of existing services introduced on the platform. This year will have an aggressive recruitment stream for the company, which has currently 65 employees. Initially planned for last year, the platform’s launch was delayed as further development was needed, he said.

As Han said, Klaytn’s “wide range of services” resembles the “WeChat Platform.” WeChat is mainly used in China and contains shopping and travel applications as well as media applications. However, WeChat’s most interesting role is a mobile payment system that supports fast peer – to – peer transactions via fiat account users.

While WeChat is popular and widely used in all of India and other parts of Asia, it is important to remember that it is a Chinese company. Eventually, all transactions are done in centralized currency by a centralized company. WeChat boasts over a billion active daily users, if even a quarter of those numbers can be achieved by Klaytn, it could lead to a much better public awareness and legitimacy of digital currencies.

With Kakao’s increasing adoption of services in South Korea and the rest of the world, a digital currency ecosystem could do wonders for the wider adoption of cryptocurrency.