Game Companies Hooked on Cryptocurrency Exchanges

[Asia Economy Reporter Kang Nahum] With the enforcement of the revised Act on Reporting and Using Specified Financial Transaction Information, the cryptocurrency exchange market has been effectively reorganized around the four major exchanges, prompting game companies to actively invest in shares of these exchanges. Game companies expect cryptocurrency exchanges to serve as hubs linking the gaming industry and the cryptocurrency industry.

◆Game companies are major shareholders in 3 of the 4 major exchanges= According to industry sources on the 8th, Gamevil's subsidiary Gamevil Plus recently made an additional investment of 53.9 billion KRW in the cryptocurrency exchange Coinone, securing a 38.43% stake and becoming the second-largest shareholder. Including the investment made in June, the total investment exceeds 80 billion KRW.

Gamevil Plus plans to pursue various related businesses such as blockchain games and non-fungible token (NFT) exchanges. A task force (TF) team has been formed within Gamevil to develop an NFT exchange, and their in-house developed games are also planned to be released as blockchain-based NFT games.

Another game company, Wemade, invested 80 billion KRW in July in Vidente, a broadcasting display specialist company, securing a stake in the 10% range and becoming the second-largest shareholder of Vidente. Vidente holds a 10.25% stake in Bithumb Korea, the operator of the cryptocurrency exchange Bithumb, and a 34.24% stake in Bithumb Holdings, the largest shareholder of Bithumb Korea. Last month, Wemade CEO Jang Hyun-guk joined Vidente as an inside director, effectively involving himself in Bithumb's management.

NXC, the holding company of Nexon, owns the domestic cryptocurrency exchange Korbit as a subsidiary. It also owns the overseas cryptocurrency exchange Bitstamp. As of July, Nexon's financial investment specialist Aquis purchased cryptocurrencies worth 8.8 billion KRW and is developing financial investment services that allow individuals to invest in various assets including cryptocurrencies. Nexon's Japanese branch also directly invested in cryptocurrencies by purchasing $100 million (119.1 billion KRW) worth of Bitcoin in April.

◆Leading the ‘Play to Earn’ paradigm= Among the four major domestic exchanges?Upbit, Bithumb, Korbit, and Coinone?game companies have become major shareholders in three. This is analyzed as a strategic move based on the judgment that securing long-term growth engines through the synergy between gaming and blockchain technology is possible.

In fact, the gaming and cryptocurrency industries are continuously expanding their intersections. NFT games, which have rapidly emerged under the concept of ‘Play to Earn’ where players can earn money while playing, are experiencing explosive growth in Southeast Asia, the United States, and Europe. At a time when the creation of expanded game economies linked with blockchain technology and cryptocurrencies is accelerating, investment in cryptocurrency platform businesses has become a natural step for game companies.

Wemade’s massively multiplayer online role-playing game (MMORPG) ‘Mir4’ is a representative case linking gaming and cryptocurrency. Wemade launched the global version of Mir4 applying blockchain technology, establishing a blockchain economy within the game. Players can mine the in-game currency Black Iron and exchange it anytime for the utility coin Draco. Draco can be exchanged for the cryptocurrency ‘Wemix’ through the blockchain wallet service ‘Wemix Wallet.’ Currently, Wemix is listed on exchanges such as Bithumb, allowing it to be cashed out at any time. There are plans to NFT-ize characters and items in the future so they can be bought and sold.

An industry insider said, "Owning exchanges is advantageous for capturing various future business opportunities derived from the cryptocurrency ecosystem," adding, "Especially, it can play a leading role in establishing the new paradigm called Play to Earn."

This content was produced with the assistance of AI translation services.