The largest music agency of South Korea SM Entertainment has announced they will be launching their blockchain platform and cryptocurrency along with tech partner CT-AI Labs. The news surfaced after the rumor that the company is battling the falling stock price and the revolt of shareholders.
CEO of CT-AI Labs, Sang-Sik Joo announced the news on 4th September at developers’ conference of UpBit in Incheon. The native news agency IT Chosun reported the new.
As per the reports, Joo said the company is trying to engage the fans with the entertainment industry by investing in the artist works through digital currencies. He also said they are discussing the project with the partners but did not disclose any further details. He only said they are planning to make use of both private and in the public domain blockchain.
He further said the entertainment industry continuously faces inefficient payment and settlement system that can be solved with blockchain. As per the reports, he is positive about the launch of SM token but refuses to disclose any further details.
The aforementioned step taken by the company can be considered as a turning point to fight the declining popularity of the company. The current value of SM Entertainment is $600 million and is also enlisted in South Korean Stock exchange. The plummeting price of the company’s stock was the primary concern among investors. It is reported from last November the company price has dropped by 43%. But the news of a new token launch has cheered the fans and the investors.
Lee Soo-man founded SM Entertainment in 1995, for some time he was known as the cultural president. The company is a powerful force behind the K-Pop world, the most significant export of Korea.
Although SM Entertainment is not the initial organization to propose the use of blockchain in the K-Pop industry, earlier a firm named K-fun was started for transactions related to K-pop on the blockchain.
However, SM Entertainment is the first to make a significant move in the Korean entertainment industry to move into crypto-verse. Earlier this year the firm joined Sony with an intent to move towards blockchain technology.
Last month Bugs the music streaming platform of South Korea added as eCommerce alliance by stable coin creator Terra. This is the first collaboration between any music streaming platform and blockchain transaction platform. After this collaboration, the music lovers and buy music, Terra.