K-pop music company SM Entertainment plans its own cryptocurrency

Thursday 5 September 2019 00:51 CET | News

Korea-based pop talent agency SM Entertainment has planned to build its own blockchain network with a native cryptocurrency.

The initiative comes as the company battles a shareholder revolt and a falling stock price. The K-pop company is listed on the Korean stock exchange and has a market capitalisation of roughly USD 600 million. However shareholders raised concerns about its finances and some of its business decisions, as its stock price has dropped 43% November 2018.

Its aim is to develop a blockchain network that would allow fans to be more engaged with the entertainment ecosystem by investing in artists’ work through cryptocurrencies. Few specifics about the technology were provided, mentioning that SM Entertainment’s goal is to make use of the concepts of both public and private blockchains. The company is currently talking to potential partners to build the network. The entertainment business also mentioned that it utilises inefficient settlement and payment systems, and blockchain could help address these issues.

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Keywords: K-pop, SM Entertainment, cryptocurrency, Korea, blockchain, stock price, Stock Exchange, shareholders, digital assets
Countries: World