Kakao Raises Millions for Blockchain Unit – Ground X

Amrit Mirchandani

March 12, 2019

Kakao, a South Korean internet company known mostly for it’s messaging application has made tremendous progress for its Blockchain and Crypto unit. A whopping $90 million has been raised through a private coin offering. Ground X is working towards another $90 to $100 million in order to further develop its Blockchain platform.

Kakao’s Dominance In South Korea’ Tech World

Kakao was established in 2014 and gained prominence from KakaoTalk which is a free mobile instant messaging application for smartphones. KakaoTalk has 220 million registered users and 47 million active monthly users.

Kakao’s Blockchain unit Ground X Corp dubbed Klaytn could help Kakao in establishing itself in Blockchain at a time when it’s creating a buzz and gaining a lot of ground. KakaoTalk also has plans for utilising the Blockchain platform. Ground X Corp has already partnered up with 26 companies such as popular game developer Wemade Entertainment Co. to run applications on the platform.

The Rise of Messaging Applications on Blockchain

Whatsapp and Telegram, which are both the most popular messaging applications currently used have already shown an active interest in Blockchain and Cryptocurrency.

Telegram especially has made an enormous impact in the ICO market, with $1.7 billion raised last year, while Whatsapp coin is reported to be launched later this year. Whatsapp is reported to roll out a digital currency pegged to the US Dollar and will be used in India first for the huge population to send money to and fro the messaging platform.

Ground X currently has offices in South Korea and Japan and is working towards achieving mass adoption of Blockchain services. Further plans of working with the Seoul Digital Foundation, which is part of the Seoul Metropolitan Government will help gradually decentralise Korea’s governmental services.