Prepare for BTS NFTs: HYBE to amass $421m stake in crypto agency and launch collectables JV
HYBE, the home of the superstars BTS, is officially entering one of the most discussed and lucrative digital markets of 2021: NFTs.
Additionally, it is making a significant contribution to the crypto craze through a new joint venture with Korean fintech firm Dunamu, which operates a crypto exchange called Upbit.
As part of the strategic partnership, HYBE is acquiring 861,400 shares in Dunamu for 500 billion South Korean won (approximately 421 million US dollars at current exchange rates). Meanwhile, according to a government filing, Dunamu will purchase 2,302,570 shares in HYBE for 700 billion South Korean won ($ 590 million).
Coindesk reports that the shares will be swapped “through a debt increase” and will result in HYBE acquiring 2.5% of the shares in Dunamu, while Dunamu will acquire 5.6% of the shares in HYBE.
This news comes on the same day (November 4th) that HYBE released its results for the third quarter of 2021 and sales of 341 billion South Korean won (288 million in the same quarter of 2020.
HYBE’s entry into the NFT market via the partnership with Dunamu was announced today (November 4th) during the HYBE Corporate Briefing 2021 with the community by the company’s CEO, Bang Si-hyuk, who resigned from his role as HYBE CEO has resigned.
The event also featured Lenzo Yoon, CEO of HYBE America, and Scooter Braun, CEO of HYBE America, who sold Ithaca Holdings to HYBE for $ 1 billion in April.
Speaking at the event, Bang Si-hyuk said that “HYBE and Dunamu plan to set up a new joint venture NFT business that will allow artists to convert IP-based content and products that HYBE has presented so far into digital assets to make for fans ”. “.
Bang Si-hyu also introduced Korean crypto millionaire Song Chi-Hyung, chairman of Dunamu, who stated that Dunamu’s goal is to create an “industry standard for blockchain and fintech”.
Song Chi-Hyung describes non-fungible tokens (NFTs) as “the hot topic of this year’s fintech industry”.
“I think the word ‘irreplaceable’ was used in one of the BTS songs,” he said. “Irreplaceable, so something unique and unique. You can think of an NFT as an irreplaceable digital asset that can be safely and reliably verified so that everyone can be confident that there is only one in the world. Such digital assets arise when certain digital content or products are given a unique value through blockchain technology. “
He added, “The fandom culture and industry itself is maturing to a level where HYBE’s artistic IP-based content and products presented by HYBE are now at a sufficient stage to be converted into digital assets through these technologies will.”
Bang Si-hyuk explained what this means in practice using the example of physical photo cards for collecting HYBE artists, some of which are produced in limited numbers and therefore exchanged by fans.
Collectibles like these cards are digitally authenticated by embossing them as NFTs and offer interactive content such as pictures, music or the voices of the artists when you click on the cards.
Owners of these cards can also exchange and save them on the Weverse fan community platform from HYBE.
“It doesn’t seem to be long before we can use digital photo cards to create a virtual space with our avatars within the platform, and fans can show such a space to each other and to the artists.”
Bang Si-hyuk added: “We are working with Dunamu to create a way to make the fan experience more diverse and secure, such as digitally authenticating the uniqueness of these photo cards and making them permanent, but also allowing them to be collected and can be exchanged, and displayed on a global fan community platform such as WEVERSE. “
“It doesn’t seem to be long before we can use digital photo cards to create a virtual space with our avatars inside the platform, and fans can show such space to each other and to the artists.
“To make this a reality, we will bring together the skills that both companies have built so far to bring a new and exciting innovation to the global music and fintech industry.”Music business worldwide