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Korea’s Kakao Corp. Considers Private Placement to Raise Funds for Blockchain Subsidiary

South Korea’s messaging app operator Kakao Corp. is considering offering a private placement to attract investors to develop their blockchain subsidiary, Bloomberg reports today, June 28.

Kakao Corporation’s blockchain initiative, the Tokyo-based Ground X, was announced at the end of March as part of the messaging app operator’s new Kakao 3.0 business plan aimed at the wider Asian markets. Bloomberg writes that Ground X aims to release a test version in September, with the blockchain platform going live by the end of 2018.

Jason Han, Ground X’s CEO, told Bloomberg the blockchain platform may be considering getting capital next month from collaboration with consumer-service companies used for gaming and content sharing, but added that no firm plans have been finalized.

In terms of what Ground X will consist of, Han predicts the addition of services like Steemit, in this case where users are rewarded for original content with cryptocurrency. According to Han, the services that Ground X will offer will be “more practical” than what other players offer in the blockchain space:

“The biggest problem with blockchain right now is that there isn’t a single service that an average person would use.”

Ground X’s location in Japan was chosen due to regulatory reasons, Han said, as Initial Coin Offerings (ICOs) are not legal in South Korea, where most of Korean chat app Kakao’s 50 million monthly users are based. Han notes that although Ground X and Kakao will work together, there are currently no immediate plans to put the Kakao chat app on the blockchain.

Pavel Durov’s popular messaging app, Telegram, also expanded into the crypto sector this year, cancelling their plans to launch a public ICO after their two accredited investor-only pre-ICO rounds raised a combined total of $1.7 billion.

Han acknowledged to Bloomberg that while it was true that creating a blockchain platform is no longer anything new, “we aren’t late here:”

“We know we’re not frontrunners of blockchain technology. But the industry is still developing.”

Freedom of Press Foundation Starts Accepting Crypto, Sees $550K Donation on First Day

Nonprofit organization the Freedom of the Press Foundation (FPF) began accepting cryptocurrency donations June 18, opening its doors to Bitcoin and four altcoins.

FPF, which formed in 2012, aims to support and protect free speech in the media, as well as campaign through whistleblower projects and raise awareness of threats to media publications.

“Your support enables us to protect journalists and whistleblowers worldwide, and will help further projects like SecureDrop, the US Press Freedom Tracker, and the archival of threatened news outlets,” the donations page explains.

FPF lists addresses for five cryptocurrencies - Bitcoin, Ethereum, Bitcoin Cash, Litecoin and ZCash - while officials say they will also consider donations in using other coins.

The move appeared to receive a warm reception in some circles, with decentralized message routing network Mainframe donating 1000 ETH ($542,000) to the FPF.

“Public advocacy becomes that much more powerful when coupled with innovation and better choices. Both organizations plan to work towards the mutually beneficial goal of tipping the scales in favor of the fight for freedom of information,” Mainframe wrote in a blog post explaining the impetus behind its decision.