Hybe, South Korea's agency behind K-pop megastars BTS announced today that it will form a joint venture to establish a Korean crypto exchange Upbit in order to get into the non-fungible token (NFT), business.
Hybe will purchase a 2.5% stake at Dunamu, a blockchain fintech startup that operates cryptocurrency exchange Upbit for $423.1million (500 billion won). According to regulatory filings, Dunamu will also acquire Hybe shares (a 5.6% stake) in a Seoul-based music agency, for $592.4 million.
The joint venture company will produce NFT photocards, which will be traded on Hybes global fan-to-artist communication platform, Weverse. This was stated by Si-Hyuk Bang (CEO of Hybe) and Chi-Hyung Song (Chairman of Dunamu), in a joint statement at Thursday's company briefing.
Bang explained that Hybes BTS NFTs would include moving images, voice of artists, and many other features. Song explained that global fans will also be able exchange digital photo cards via virtual spaces.
Hybe and its subsidiaries revealed further plans to expand the BTS brand into the digital space. The NFT JV will include a BTS videogame and a webtoon company.
Hybe is one the most successful companies producing pop bands right now and they are enjoying the ride. Lenzo Yoon (CEO of Hybe America) stated that Hybe America and Universal Music Group were preparing to announce a global debut for a girl group. Hyunrock Han (CEO of Hybe Japan) said that Hybe Japan would announce a boy group in Japan.
South Korean K-pop stars are anticipating the arrival of NFTs in order to increase their revenue potential and turn their IP into digital assets.
The four largest entertainment companies in South Korea, Hybe Entertainment, JYP Entertainment, SM, & YG, are all competing to tap into this new technology. JYP Entertainment partnered Dunamu to create a K-pop-based NFT platform. SM launched a cryptocurrency platform and blockchain platform in 2019.
