Blockchain and NFT to add new values to biz, Kakao Entertainment argues amid Terra scare

[Photo by Lee Chung-woo]

Korean companies and brands should leverage on non-fungible token (NFT) for outreach to immeasurable digital fans and consumers, according to Kakao Entertainment’s senior executive who touted for blockchain technology amid crypto scare sparked by Terra collapse.

“NFT has become a general trend that the market cannot go against,” said Ryu Jung-hye, vice president of CEO Vision Office at Kakao Entertainment, a unit of Korean mobile app giant Kakao as she addressed Maeil Business Newspaper’s forum for CEOs in fashion, beauty, and retail industries on Tuesday.

New markets are emerging as digitalization matures across the world.

With NFT technology providing authenticity, a digital image turns into the one and the only asset in the world that carries an actual value, claimed Ryu, referring to the case of “Everydays: the First 5000 Days,” a digital work of art created by Mike Winkelmann, known professionally as Beeple. The purely-digital NFT artwork was sold for $69 million at Christie’s auction in March last year.

Moreover, the Bored Ape Yacht Club, a collection of unique digital collectibles living on the Ethereum blockchain, has become a blockbuster in the digital asset market. The cheapest piece of 10,000 Bored Ape NFTs created by Yuga Labs in April last year is traded at around $350,000, and celebrities like American basketball star Stephen Curry use the NFT avatar as profile pictures on social media.

Global retail brands are already moving fast to incorporate NFT with their products. Sports brand Adidas made NFT collaboration with Bored Ape Yacht Club, which brought in over $20 million in sales.

Even those unfamiliar with the NFT concept, they usually find the collaborative works attractive, said Ryu to underscore the new opportunity that blockchain technology can offer to traditional business operators.

Many see NFT as a type of gamble due to the highly volatile cryptocurrency market but the market is changing rapidly with NFT adding real value to digital assets, said Ryu.

By Kang Young-woon and Cho Jeehyun

[ⓒ Pulse by Maeil Business News Korea &, All rights reserved]