Kakao, South Korea’s foremost internet firm which has been running a private token sale for its blockchain contributory, Ground X, hoping to raise USD 300$ million which believes in the latent of blockchain technology and of a decentralized imminent stuffs, and aimed to study and develop blockchain technology to industrialize it and apply to it to the real world.
At present-day, blockchain technology lacks services that can be skilled and experienced in the real world associated its outstanding potential that serves as the biggest obstacle for this technology to grow into an industry. To solve this issue they have a scalable blockchain platform in addition to a meaningful decentralization app (Dapp) with the scale of Kakao that wants to address these 2 challenges and aims to be a global leader in the blockchain industry.
The news was cracked by a local media outlet Hani that according to this report, Kakao is looking to draw subsidy from the overseas foreign investors via the private sale of its KLAY token as the portion and a part of the Klatyn platform. Although it is a token sale by the definition, Kakao states that “it is not an investment enrollment for the general public”, which slightly differs to the traditional structuring of Initial coin offerings (ICOs), which are presently barred and unregulated in South Korea. In this March, Kakao had declared the Ground X subsidiary as part of its multinational’s businesses strategy “Kakao 3.0” and the question here at this time was to whether or not there will be an ICO’s attached here if the project was raised and swiftly shot down, though later on in June this year, Bloomberg reported that CEO Jason Han of Ground X described the outlook of the project scheme seeking the “capital and business coalitions with the consumer-service companies”.
The Ground X arm of Kakao was initially set up in Japan capital Tokyo. Nevertheless, Joh Su-Yong, co-CEO of Kakao platform, also shot down rumors of an ICO in this March, said that there were no plans to launch one in either Japan or in Korean territories, viewed as a means to avoid the ICO ban in South Korea in 2017 that moved to establish in Tokyo headquarters was likely to evade guidelines connected further specifically to cryptocurrencies that can’t confirm the present size of speculation or the nature of stakeholders due to its company demanding “conference with our partners” for such information to be disclosed here.
Rendering to the Hani sources, the mainstream of the anticipated target has been ensured by Ground X, suggesting that a Chinese venture capital firm can be participating in the token sale.
“The target amount is USD $300 million and Kakao is very close to secure its target. September’s meeting with Ground X with a China-based venture capital executive held a meeting and even at that time, Ground X was planning to raise USD $300 million.”
Furthermost, Kakao established a noteworthy partnership with stable coin project Terra where this move was another part of the Ground X project for the purpose of creating a smooth blockchain payment experienced for users. Besides, Ground X has also amalgamated with an Infrastructure-as-a-Service (IaaS) platform so-called Orbs, a project “highly likely” to collaborate with Terra.
Kakao’s news is of little surprise as the ICO market diminishes ever descending, startups and enterprises launched to seek capital from outdated institutions such as incubators, venture capital (VC) businesses and hedgerow funds. When a study on this matter, is a sign of market maturity and the “professionalization” of the blockchain industry environment.
As a private sale, only registered, accredited and approved institutional investors that allow investing in the token sale of Kakao. Considering their meetings with accredited investors held confidentially without any information provided to the media, the company planned a demanding path to raise funds in a way does not violate regulations in Japan, South Korea and even in the United States.