Kakao: South Korean Internet Giant, Plans To Launch A Crypto Wallet

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Kakao: South Korean Internet Giant, Plans To Launch A Crypto Wallet

Author: Eric Scriber
August 12th , 11:42 PM


Kakao Corp, the South Korean internet firm, recently unveiled a teaser page for their upcoming crypto wallet dubbed Klip. The teaser page was unveiled on August 12, 2019 Through News1 of Korea. This page can be accessed by clicking on the “More” tab of the KakaoTalk messaging app. Kakao plans to launch its crypto wallet in this platform. 


A Potential User Base of 50 Million People

GroundX, the company’s blockchain development subsidiary, has created the Klip wallet. It will make it possible for users to store any Klaytn that they earn. The crypto wallet’s mission will be to support applications such as content creation, finance, and games powered by the blockchain. Additionally, this wallet is expected to support non-fungible assets. Besides the Klaytn tokens, this wallet will most likely support tokens which are part of the Klaytn mainnet, a proprietary product that was released by the company in June 2019. 

On the teaser page, logos of partner tokens such as Pebble, Airbloc, and Spin Protocol are displayed. By June 2019, KakaoTalk supported 50 million users globally. According to Han Jae-Sun, who is the CEO of GroundX, the company decided to integrate the wallet into the messaging app to make access to crypto easier. 


Expected Launch

According to an unnamed source from Kakao, the company expects to launch this wallet sometime during the second half of 2019. During the launch of the Klaytn mainnet, it was reported that the mainnet’s market cap was around $64.8 billion. The company has a lofty goal of supporting about 34 dApps on the platform by October 2019. 


Another ICO

In March, Kakao announced that it planned to repeat its ICO for the Klaytn coin after it netted $90 million in the first round. When the ICO was first announced, the company announced that it wanted to raise $300 million via GroundX for development of the token. 

Some of the venture capital and private equity funds that took part in the ICO were Crescendo Equity Partners, IDG Capital, and Translink Capital. Thus far, the GroundX platform has managed to attract Zandau, the Chinese travel agency, and Wemade Entertainment Co., a game developer. 


Getting Around Tough Regulation

To circumvent tough regulation in South Korea, the company made sure that the tokens would only be offered to vetted and registered investors in the private sector. Another measure the company took was locating GroundX in Japan. 

While South Korea has been taking progressive moves that are in support of crypto, it is still very strict on ICOs. The position of ICOs in the nation is still in limbo. To avoid any legal complications, Kakao decided to hold its ICO in Japan. 

Laws in Japan demand that any ICO conducted in the nation must be done by entities registered in the nation. However, Kakao’s relationship with the financial regulator in South Korea over its blockchain efforts is still not clear. 

For now, the company would appear to have found a successful workaround. When the law becomes clear in South Korea, the company might decide to move its blockchain operations back there. 


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