Korea Information Certificate Authority Dives into NFT Domain with New Platform Launch

The European Union (EU) introduced its Markets in Crypto Assets (MiCA) regulation in June of last year, refining the EU bloc’s stance relative to digital assets. However, one crypto sector entrepreneur believes that the regulatory framework may force crypto startups to relocate to the Middle East. In an interview with Cointelegraph, Anastasija Plotnikova, co-founder and CEO of Fideum, a blockchain infrastructure company geared towards institutions, outlined that the application of this regulatory framework by EU member states may have some unintended consequences.Photo by Christian Lue on UnsplashCentralization concernsWhile Plotnikova welcomes the legitimization of crypto through regulation as a net positive for the sector, she warns that this particular regulatory framework could lead to consolidation among crypto firms. That would mean a reduction in the overall number of Web3 enterprises in Europe and as a consequence, increased risk of centralization in an industry that is supposed to be all about decentralization. Whilst the regulatory framework was introduced last year, it's not due to go into full effect until Dec. 30, 2024. Plotnikova believes that the framework doesn’t give crypto startups the wriggle room to scale whereas in the case of larger entities with much more assets under management, they will find it much easier to scale. French multinational financial services company Societe Generale, an entity with around $160 billion worth of assets under management and 126,000 employees, stands out as an example. It recently announced that SG Forge, a subsidiary company, would partner with Austrian crypto exchange Bitpanda to issue and list its EUR ConVertible (EURCV) euro-denominated stablecoin. Another European TradFi behemoth, Landesbank, Germany’s largest federal bank, announced earlier this year that it will launch crypto custody services. Global competitionSpeaking to the publication on the margins of the European Blockchain Convention in Barcelona earlier this week, Plotnikova stated: “I'm afraid it will lead to consolidation between European and American companies, and they will just move somewhere to the Middle East. The European Union had has done amazing things in harmonising legislation, but enforcement comes down to local and national authorities and they vary greatly.” There’s no doubt that various world centers and regions have been competing to varying extents to become innovative hubs relative to the development of blockchain-based enterprises. Plotnikova alluded to Europe losing out to the Middle East in this instance and principal among those nations in the region vying for a share of the business has been the United Arab Emirates (UAE).  The UAE itself, together with individual emirates such as Abu Dhabi and Dubai, has been putting in place a regulatory framework relative to crypto that has been broadly praised by the crypto sector. As recently as earlier last week, the Dubai regulator continues to fine tune its regulatory framework, tightening up requirements related to the marketing of crypto products and services. A recent report by Chainalysis found that the Middle East region accounted for 7.5% of global crypto trading volume, with the UAE and Saudi Arabia having been found to demonstrate a strong interest in decentralized platforms. 

The South Korean government has begun the process of selling its stake in NXC, the largest shareholder of Nexon, a video game company originally founded in South Korea and now headquartered in Japan. According to the Seoul Economic Daily, which cited industry sources, the Ministry of Economy and Finance began a public sale process on June 30 for its shares in NXC. These shares were received as payment for inheritance tax from the family of Nexon’s late founder, Kim Jung-ju. In February 2023, Kim’s widow, Yoo Jung-hyun—who also serves as chair of the board at NXC—along with other family members, transferred 851,968 NXC shares to the government to settle the inheritance tax liability.Photo by Kelly Sikkema on UnsplashEarlier failed sale attemptsThe government’s latest attempt to sell the shares follows two previous efforts that failed, primarily due to high asking prices at the time. The current estimated value of the shares stands at 4.7 trillion won (approximately $3.47 billion), reflecting a 20% premium over their net value due to the rights associated with company control. However, the shares are expected to sell at a lower price, since acquiring them would not lead to actual control of the company—Kim’s surviving family still holds a majority stake in NXC. Industry insiders view Chinese tech giant Tencent as a strong contender to purchase the shares. However, Tencent recently denied reports from last month that claimed it had approached Kim’s surviving family to discuss a possible acquisition of Nexon. The company had also expressed interest in acquiring Nexon back in 2019 but ultimately did not take part in the bidding process. According to Chosun Ilbo, a Tencent acquisition is being viewed as a possibility, as the Shenzhen-based firm continues efforts to secure overseas intellectual property. One industry source noted that Tencent tends to invest in Korean game developers every three to four years. The source also mentioned that Tencent had approached Korean venture capital analysts specializing in gaming last year to gather information for a potential acquisition shortlist. If Tencent were to purchase all of the government-held NXC shares, it would become the second-largest shareholder in the company. Given its ongoing investments in the Korean gaming sector, the source said it is likely Tencent will participate in the sale process organized by the government. Nexon’s blockchain pushNotably, Nexon has been expanding its presence in the cryptocurrency space. According to data from Bitcoin Treasuries, the company holds 1,717 Bitcoin (BTC), acquired at an average price of $58,226 per coin. Beyond its BTC investment, Nexon is actively exploring blockchain technology through its Web3 IP-expansion project, NEXPACE.  This initiative features the MapleStory Universe ecosystem, along with MapleStory N, a PC-based massively multiplayer online role-playing game (MMORPG) that incorporates blockchain technology. Both projects are powered by the NXPC token. MapleStory was originally developed by Wizet Studio in 2003 and became part of Nexon when the company acquired the studio the following year. 

Axie Infinity Teams Up with CyberKongz in Blockchain Gaming RevivalIn a bid to reinvigorate the world of blockchain gaming, Sky Mavis, the company behind the groundbreaking play-to-earn (P2E) blockchain game Axie Infinity, has announced an exciting partnership with CyberKongz, an Ethereum-based non-fungible token (NFT) collection.Together, they are set to develop a more comprehensive gaming ecosystem for the Ronin blockchain. Sky Mavis originated in Vietnam and came to prominence for developing the first major breakthrough for blockchain gaming within the crypto space. The company’s ties with Vietnam continue although it has since established its headquarters in Singapore.While the announcement, made via a blog post published on Tuesday, has sparked curiosity about a brand-new game on the horizon, specific details remain under wraps. Kathleen Osgood, Sky Mavis’ Head of Business Development, revealed that the upcoming game will be designed to be interoperable, seamlessly integrating with existing Axie Infinity experiences.Photo by Bestami Sarıkaya on UnsplashMoving to the Ronin blockchainBut the partnership goes beyond just creating a new game. It also includes the migration of CyberKongz’s popular Play & Kollect game, which is based on the Polygon blockchain. The move to the Ronin blockchain opens up new opportunities for CyberKongz to expand its user base and tap into Ronin’s thriving gaming community.Axie Infinity first captured the gaming world’s imagination in 2021 when it introduced the “play-to-earn” concept. This groundbreaking model allowed players to earn valuable cryptocurrency tokens while playing the game. It quickly became the leading project by sales volume in the burgeoning NFT space, according to data from CryptoSlam. On the other hand, CyberKongz also made headlines in 2021 when it impressively burned $4 million worth of Ether.However, since the NFT craze of 2021, interest in blockchain gaming has seen a decline, with some crypto-based games, such as Neopets, even transitioning to a non-crypto approach.Play-to-earn deficienciesSky Mavis Co-Founder, Aleksander Larsen, acknowledged earlier this year that the play-to-earn model needed improvement to thrive. He emphasized that games must prioritize fun and feature a robust economic system that enables players to earn rewards. Despite this, Kathleen Osgood remains optimistic that the blockchain gaming space can experience a revival through an experience that truly understands the motivations driving users towards Web3.According to Osgood, many teams in the space have merely attempted to replicate what worked in Web2, which may not be enough to drive explosive growth. Instead, she believes that attracting a massive audience lies in taking an innovative approach to leverage the unique offerings of Web3, appealing to users who are naturally drawn to its decentralized and rewarding nature.Gaming evolutionSky Mavis has started opening up its infrastructure to the Web3 ecosystem through the Ronin blockchain. By doing so, it hopes to create gaming communities that are not only more rewarding but also longer-lasting, fostering an environment of engagement and enthusiasm among players.As blockchain gaming continues to evolve, partnerships like the one between Sky Mavis and CyberKongz signal renewed efforts to iteratively improve on previous blockchain gaming models. With a new game on the horizon and the migration of CyberKongz to the Ronin blockchain, the stage is set for a new era of immersive and rewarding blockchain gaming experiences, building upon past efforts.