South Korea’s leading blockchain faces greater competition in the NFT market

Driven by the growth of encryption and NFT services provided by Kakao, South Korea’s non-fungible token (NFT) space expanded rapidly in 2021, but competitors are joining the competition.

After the government ruling on November 5, South Korea’s NFT market may embark on a path of further expansion NFT purchases do not incur taxes.

The blockchain Klaytn, developed by South Korean technology startups Kakao and GroundX, is obviously the first choice for Koreans looking for online buying and selling of NFTs.

Klaytn’s market dominance in South Korea is unparalleled because Kakao’s flagship product suite KakaoTalk has surpassed 52 million Active users and integrated Klaytn’s Klip crypto wallet directly into its mobile app.

Sangdi, CEO of Spoon, a South Korean-based NFT creator platform, told Cointelegraph, “If KakaoTalk promotes them, ordinary people who have not been exposed to cryptocurrencies will be familiar with them and [they will] Accept NFT as a culture. “

also, Klaytn is one of only three blockchains Supported by OpenSea NFT market. Kakao’s own Kraafterspace NFT casting service has released more than 37,000 NFTs for sale on OpenSea, of which nearly 7,000 have been purchased.

South Korean NFT creators realized that the platform on Klaytn was tailored to their target market, South Korean collectors. Sangdi added: “We first target the Korean market, and then the global market. I think Klaytn will help us focus on South Korea at the moment.”

As South Korean NFT collectors become more and more accustomed to the global NFT trend, alternatives such as Polygon, the second-tier expansion network of Ethereum, pose a potential threat to Klaytn’s dominance.

Polygon is the second of the three networks supported by OpenSea, making it a relatively familiar platform for South Korean NFT collectors. It also supports a strong NFT market, which some Korean projects believe is more suitable for their global business model.

Jisoon Lim, CEO of 3PM, a music-centric NFT curation and publishing platform, deployed the platform on Polygon instead of Klaytn. Although in Korea, Lim explained to Cointelegraph that Polygon was the best choice for the project.

South Korean NFT enthusiast Karl Hyun also believes that Polygon is more suitable for the NFT market than Klaytn. Although his favorite series is not in South Korea, he believes that the second-layer solution based on Ethereum is most helpful in expanding the global influence of NFT.

In an interview with Cointelegraph, he said: “Polygon as the second layer works best by integrating with Ethereum, but isn’t Klaytn closer to an independent side chain?” Before adding, “Since Polygon is based on Ethereum, Therefore, the best way to increase the scalability of NFTs while minimizing centralization is to use Polygon.”

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Kakao is also involved in the blockchain field Expand to venture capital, And it has established a long-term partnership with Dunamu, the owner of Upbit Exchange in South Korea.

Dunham is Prepare to launch NFT platform together with HYBE, The entertainment company behind the popular K-pop group BTS.Kakao is too planning An NFT market and metaverse called Kakao Games.

For now, Kakao’s foothold may be hindered by its slow global expansion efforts. However, Sandy said that concerns about globalization are a temporary obstacle, adding that the company hopes to become a global brand.