The blockchain arm of South Korean messaging company, Kakao, Ground X, has obtained $90 million up in a private token sale. $90 million raised in a private token sale by Kakao’s blockchain subsidiary.
Ground X CEO, Jason Han said that IDG Capital, Cresendo Equity Partners and Translink Capital participated in the round. The company is planning to launch its blockchain division in June. Also, would like to raise additional capital beginning Tuesday, for another round of a comparable amount.
In March 2018, Kakao first disclosed its intention for a blockchain arm. It made the announcement not long after it had released Ground X to create a blockchain-fueled foundation for application developers. At the time, Kakao executives had said the goal was to incorporate the services of future blockchain-based offerings with Kakao’s current web contributions, for example, the Kakao Talk messaging application.
A test network (testnet) named Klaytn, was released by Ground X last fall, as an exclusive proprietary blockchain network. Han shared that 26 organizations that want to run applications on Klaytn have already joined. The following are just to name 3:
- South Korean computer game designer Wemade
- Video streaming company, Watcha
- A unit of Chinese travel organization, Zanadu
The association made by the Seoul Metropolitan Government, entitled The Seoul Digital Foundation, will also be working with Ground X. They will create blockchain ventures concentrating on public and social services.
As some of Kakao’s services may be decentralized, last year Han told CoinDesk Korea that Ground X can be considered a “partial or gradual decentralization”.
He also included that the token economy is a plan of action that nobody could have envisioned previously. Up to this point, Kakao has just worked in Korea, yet through blockchain they can venture into the worldwide market. That implies taking part of the earnings they acquire as a go-between and utilizing it to grow their market by dividing it with clients.