SM Entertainment, a leading South Korean talent agency, is planning to introduce a digital currency to bring fans closer to the artists.
Reported by local IT news outlet ITChosun on September 4, the entertainment giant is partnering with tech organization CT-AI Labs to roll out the cryptocurrency.
The prospect was announced at the developer conference of South Korean crypto exchange UpBit by Sang-Sik Joo, chief executive of CT-AI Labs.
He revealed that with the blockchain network and the digital currency, the company is aiming to allow fans to invest in artists’ works. This will create more engagement between the fans and the artists in the entertainment industry.
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“Blockchain from the entertainment standpoint is a decentralized entertainment entity,” Joo said.
Founded in 1995, SM Entertainment made its mark with the rising Korean pop industry, which is finding a massive audience globally. According to Crunchbase, the company has an estimated annual revenue of $350 million.
Despite the impressive figures, the company’s stock price is tumbling on the exchanges. Since last November, its share prices went down 43 percent. After shareholders of the company raised concerns with the company’s finances and business decisions, it underwent a management reshuffle recently.
Creating a blockchain-based ecosystem for investment on celebrities
Though launched as an alternative to fiats, cryptocurrencies are penetrating every sector, including the lucrative entertainment industry. Welterweight boxing champion Manny Pacquiao recently launched the first celebrity-backed digital currency, which will give his fans access to exclusive merchandise and connect with the star on social media.
Pacquiao’s coin will be listed on the Singapore-based Global Crypto Offering Exchange (GCOX), which is trying to create a celebrity-focused marketplace on blockchain. The exchange also signed US singer-songwriter Jason Durelo and tennis player Caroline Wozniacki to launch their digital currencies.