Swing Launches Blockchain-Based Service to Offer Financial Incentives for Scooter Riders

Modhaus attracts $8M in advancing blockchain-based K-pop fan engagementModhaus, a South Korean Web3 startup focused on blockchain-driven K-pop promotion, recently announced that it has raised $8 million in Series A funding, according to a report by local news outlet Maeil Business Newspaper. This latest funding round brings the company’s total investment to over $12 million.Photo by C D-X on UnsplashKey investorsThis Series A funding was led by Sfermion, a Chicago-based venture capital firm focused on non-fungible tokens and the immersive internet. The investment round also saw participation from various investors, including SM Culture Partners, Laguna Investment, the KDDI Open Innovation Fund, Foresight Ventures, Reflexive Capital, NFT song collector Cooper Turley, Quantstamp CEO Richard Ma and Playco CEO Michael Carter.Modhaus had previously attracted investment from other players in earlier funding rounds. These included UNOPND, a venture division of Web3 venture capital firm Hashed; Naver D2SF; CJ Investment and Futureplay.Digital photo cards and tokensDoubling as an entertainment agency, Modhaus operates Cosmo, an app that empowers fans to play a role in their favorite artists’ operations. Through Cosmo, fans can purchase digital photo cards, earning tokens in return. These tokens then allow fans to vote on various aspects of their artists’ activities. The use of blockchain technology ensures that all votes are transparently and securely recorded, boosting the fan-artist relationship.Sfermion’s general partner, Dan Patterson, expressed enthusiasm about their investment in Modhaus, explaining that it “has innovatively bridged the K-pop fandom with both tangible and digital realms through NFTs. [The new] investment signifies more than just financial backing; it’s a venture into melding the energetic world of K-pop with the expansive narrative of the metaverse.”Jaden Jung, CEO of Modhaus, said, “K-pop fans possess keen insights. With their sharp eyes for talent and trendspotting, we aim to enhance artist value through amplified fan involvement.” He emphasized the crucial role of fan engagement in the entertainment industry, pointing out that Modhaus is dedicated to elevating this aspect to new heights. He referred to the achievement of girl group TripleS, which has garnered 1.74 million subscribers on YouTube since its debut in February of this year, as an example of what they envision for Cosmo. He suggested that Cosmo has the potential to evolve into a platform akin to LinkedIn or Kickstarter within the K-pop sector, aiming to maximize the value and reach of artists.Deepening artist-fan connectionsModhaus seeks to use the funds raised from this recent investment round to advance its Cosmo platform. This improvement aims to deepen the connections between fans and artists, providing fans with more opportunities to actively engage with and contribute to their favorite idol groups.At the helm of Modhaus are co-founders Jaden Jung and Kwanghyun Joseph Baek. Jung brings over two decades of experience as a producer at JYP Entertainment and Woollim Entertainment. Baek, on the other hand, has a background as the Chief Operating Officer at Playlist Originals, a digital content studio, and as a consultant at Bain & Company.Their team also includes Chief Product Officer Park Jae-hyun, formerly Product Owner at Viva Republica, the fintech company behind the internet-only bank Toss. Chief Creative Officer Kim Jong-soo has a history in the music industry as well, having produced girl groups like Dreamcatcher and Dal Shabet. Chief Business Officer Lee Gyu-hwa comes from MyMusicTaste, a K-Pop platform, while Chief Financial Officer Yang Ji-eun brings her experience from venture capital firm NCORE Ventures.

Data Labs leverages blockchain technology for data-based travel itinerary appFounded in 2021, Data Labs is changing the landscape of travel by leveraging blockchain and NFT technology to offer a wallet service called “MyInfo Market,” where users can store and control their own data, according to an article published by Korean news outlet Data News.In particular, MyInfo Market can be used in tandem with the company’s travel app Yeohaengdaelo, which utilizes users’ travel-related data to recommend travel destinations and organize and share itineraries. Users can directly manage their personal preference information on MyInfo Market and selectively submit the information necessary to receive rewards. “It’s not just a travel itinerary app, it’s also a way for individuals to earn money using their own data,” said Kim Jong-hyun, CEO of Data Labs.Photo by Eva Darron on UnsplashSeamless travel experienceYeohaengdaelo integrates Naver Blog, Instagram and KakaoTalk services into one app, aimed at relieving the stress that comes with travel preparation, Kim explained. It utilizes data such as the region a user is traveling to, their travel companions and information on facilities, as well as their travel preferences and patterns. The app also provides real-life services such as discounts at designated restaurants near the travel site.Building trust and valueThe company explained that it intends to maintain a cyclical data ecosystem where users can willingly provide their data to get travel recommendations and receive suitable compensation for that information in return. Because the ecosystem is blockchain-based, it provides a safe method of personal information management.Since the launch of Yeohaengdaelo in July, Data Labs has been developing a business model that can secure a solid user base and revenue for affiliated businesses. It expects to reach 55,000 members next year and 2.14 million members by 2028. The company also expects to use the business model as a basis for generating KRW 500 million (approximately $386,000) in revenue next year by linking marketing channels, issuing discount coupons for kids’ amenities and providing data royalties.In the future, Data Labs plans to expand Yeohaengdaelo to include not only travel preparation services but also information on various discounts that users can receive based on the location they are in. Efforts like this will be necessary to provide unique user experiences, the company said.Data Labs is also currently receiving support through Y&Archer’s tourism acceleration program. Y&Archer is a Korean investment and acceleration firm known for its AC Program, which discovers, accelerates and supports startups through various projects.“In the past, companies profited from personal data, but Yeohaengdaelo allows individuals to monetize their data. Our goal is to create a world where individuals can regain the rights (to their own data) and be at the center of Web3 content,” Kim said.

How will Binance’s criminal case affect its presence in South Korea?Binance, the world’s largest cryptocurrency exchange, has reached a settlement with the U.S. government to pay a fine of more than $4.3 billion after the exchange was accused of anti-money laundering (AML) and sanctions violations. Co-founder and CEO Changpeng Zhao also pleaded guilty to violating the Bank Secrecy Act, which requires financial institutions to submit documentation to prevent them from becoming mediums for criminal funding. Binance will thus be withdrawing completely from the U.S.Photo by Vadim Artyukhin on UnsplashNews of this incident has sparked keen interest within the South Korean crypto industry regarding the impact it could have on Binance’s presence and influence in the country.Murky future for Binance as Zhao resignsBinance allegedly failed to report transactions involving criminal entities such as terrorist groups, ransomware perpetrators and money launderers without implementing a system to prevent such crimes. In particular, organizations like the Izz ad-Din al-Qassam Brigades — the armed wing of the Palestinian militant group Hamas — as well as the Palestinian Islamic Jihad and ISIS were found to have utilized Binance as a channel for their funds. Furthermore, the exchange also facilitated transactions with users in sanctioned territories such as Iran, North Korea and Syria.Zhao has subsequently decided to step down as Binance’s CEO, taking to his X (formerly Twitter) account to state that he believes it is the right move. However, he also emphasized that the U.S. government did not accuse Binance of misappropriating user assets or engaging in market manipulation.Despite this fiasco, some insights have painted Binance’s future in a positive light. JPMorgan, the largest bank in the U.S., stated that the uncertainty surrounding Binance itself would diminish. “For crypto investors, the prospect of settlement would see the elimination of a potential systemic risk emanating from a hypothetical Binance collapse,” the bank said, according to an article published by digital asset news outlet The Block.GOPAX reaffirms partnership with Binance despite concernsGOPAX, a Korean fiat-to-crypto exchange that was acquired by Binance in February, also maintained a rather unexpected positive outlook. The acquisition had been followed by a complicated string of events hindering Binance’s full-fledged expansion in Korea, including delayed approval from the country’s Financial Intelligence Unit (FIU) to become a virtual asset service provider (VASP) and multiple leadership changes as a result.Investors in GOFi — GOPAX’s decentralized finance (DeFi) service — subsequently responded by filing a lawsuit at the end of June, claiming that financial authorities unjustly delayed the approval. They argued that, by approving the request, the FIU would enable Binance to provide the capital that GOPAX had struggled to gather to pay principal and interest payments on GOFi in the wake of last year’s FTX collapse.However, these circumstances did not sway GOPAX’s decision to work with Binance. “We learned of the news about Binance’s fine through articles from foreign media platforms,” GOPAX said. “Regardless, we are still in a business and technical partnership with the exchange.”Prospects for Binance’s landing in KoreaIn contrast to GOPAX’s seemingly positive outlook, the Korean crypto community has voiced mixed opinions about the effect of this development, especially on Binance’s successful entry into the domestic market.If GOPAX’s VASP approval had been delayed due to concerns about Binance’s suitability as its largest shareholder — incited by the legal risks it posed in the U.S. — the possibility of the approval going through may be more plausible as some of these risks have since been alleviated, said Yoon Seung-sik, an analyst at Seoul-based research firm Tiger Research.However, Jang Hye-won, an analyst at crypto data research platform Xangle, pointed out that interpretations may differ depending on the reasons behind FIU’s hesitation in approving the GOPAX acquisition. “If the concerns revolved around legal risks, then the path for Binance’s entry into Korea may seem cleared since those risks have been resolved. But if the concerns are about Binance’s capital inflow into the country, then this incident (Binance’s criminal case) will have no effect,” she explained.On the other end of the spectrum, some experts believe that this incident may have negatively affected the GOPAX acquisition. Hwang Suk-jin, a professor at Dongguk University’s Graduate School of International Affairs & Information Security and a member of the ruling People Power Party’s committee for virtual assets, stated, “Since criminal punishment for Zhao and the U.S. Securities and Exchange Commission’s (SEC) lawsuit are still pending, it’s hard to conclude that legal risks have been completely resolved. Binance paying a fine for money laundering may actually reinforce the FIU’s concerns about legal risks, making the GOPAX acquisition decisively unfavorable.”These statements come after a public opinion survey conducted earlier in June by Cratos, a Korean blockchain-based polling app, revealed that a 64.6% majority of respondents favored approving the GOPAX acquisition.