Messaging is among the most important services a company can offer, it’s a vital activity in every country’s economy because everyone uses it, making life easier for everyone.
However, it also has some payment disadvantages because their security system is highly vulnerable, making new payment methods and service use extremely necessary. There are many offers to improve profits and the number of customers for service-providing companies; thus the search for strategies to expand the market.
This has turned it into a profitable, affordable and innovative business, enabling investors to join the sector. That’s the case of KAKAO, a South Korea-based messaging giant that was the result of the merger between Daum Communications and Kakao, back in 2014.
The company, which has bought several stocks from different Asian firms, is now diving into the virtual asset market. KAKAO wants to attract investors through this market, establishing a new branch in Singapore to raise funds _ mostly foreign _ from those already immersed in the cryptocurrency world.
“Kakao Corp., a major South Korean internet conglomerate, has established a subsidiary of the company in Singapore to attract foreign investments with cryptocurrencies,” Seoul-based media outlet News1 reported on Thursday.
According to the report, Kakao Corp. established its own Blockchain platform named Klaytn, which was an original idea from Kakao subsidiary Ground X. News 1 also reported that Kakao Corp. is weighing the possibility of establishing another special corporation in South Korea aimed at managing the investments.
That means a lot of good news for the company, which has already tested the Klaytn network and is set to begin operating during the first quarter of 2019, although it is already developing and slated to take big steps toward gathering cryptocurrency investors _ such as the stablecoin Terra _ which will use the Klaytn network as a Blockchain-based payment method, according to Cointelegraph.
Kakao Corp. estimates to raise around 100 billion won by December, which suggest a bonanza for the cryptocurrency world, giving the market more confidence and expectations.
“This investment contract seems to include not only sales of simple tokens, but also Kakao Blockchain business cooperation. The reason for the establishment of an investment corporation in Singapore is that it is easy to raise funds and has a large tax benefit.”
There is also de case of Golden Gate Ventures, one of the most important venture capital firms in Southeast Asia and also based in Singapore. GGV recently released a $10 million USD fund to invest in companies involved in Blockchain and cryptocurrency industries.
All this suggests that, despite the huge swings, the virtual asset market is making its way through the world’s biggest markets and financial systems, creating important financial groups and gaining more confidence from investors and businessmen.
By Iván Fajardo