The Upbit operator chooses NFT venture with BTS’ Hybe as the most anticipated project

BUSAN — The head of Dunamu, the operator of Korea’s No. 1 cryptocurrency exchange Upbit, singled out the firm’s non-fungible token venture with K-pop powerhouse boy band BTS as his most anticipated project at this year’s Upbit developer conference held Thursday.

“Crypto exchange operators face many constraints when expanding blockchain businesses,” Dunamu CEO Lee Sirgoo said in a press conference held on the sidelines of the UDC in Busan.

“For us, NFT is the most viable solution for us to make money in addition to exchange fees – our joint venture with Hybe, called Levvels, is currently preparing to launch its services, and our chairman Song Chi-hyung sees it as a key project,” he added.

Last November, Dunamu signed a share swap agreement with Hybe to establish a JV that aims to develop and launch NFTs based on artists represented by the K-pop powerhouse. Collectors will be able to purchase more projects made by Levvels, including NFTs of BTS items.

“We think Levvels will be an opportunity to finally go global and venture into the overseas market,” Lee said.

Dunamu has struggled to expand its operations overseas as foreigners are prohibited from buying or selling crypto in Korea.

“Dunamu is very grateful that Hybe has received permission from the US government to operate there, which enabled us to invest in Levvels,” Lee said.

The venture will be based in the USA, where both the NFT market and Hybe artists’ fan base is strong and significant.

In the NFT market, Lee described last year’s market as “overheated”, but Dunamu was unable to capitalize as much as it had expected.

“However, the NFT market has grown steadily, and we believe we will be able to achieve a fantastic performance if we can work with Hybe – which has BTS and a strong intellectual property portfolio – to manufacture NFTs and sell them in the foreign market,” the Dunamu boss told reporters.

NFTs are unique, irreplaceable and irreproducible digital objects – mainly works of art, music and other projects – backed by blockchain technology that provide buyers with proof of ownership.

Meanwhile, Lee said Dunamu is ready to face competition from global crypto exchanges, should they enter Korea, citing Upbit’s transparency and stability as major strengths.

“We don’t yet know if the Korean crypto market will be changed when foreign exchanges enter the market. But we have faith that Upbit will be unshakable due to its transparency and stability.”

There have been increasing signs in recent months that more foreign crypto exchanges are seeking to enter the Korean market.

Vidente, the owner of South Korean cryptocurrency exchange Bithumb, said in July that it has been in discussions about a possible sale of its stake to FTX, the crypto trading platform co-founded by billionaire Sam Bankman-Fried. Media reports also claimed that leading exchange Binance is eyeing a return to South Korea after exiting the market in January 2021.

Around 3,000 people registered for this year’s UDC, the country’s largest annual blockchain developer conference, which started on Thursday, according to Dunamu officials. The two-day event, held in person at the Busan Port International Exhibition & Convention Center after two years of pandemic disruptions, seeks to address the latest issues and trends in the blockchain industry.

([email protected])