SM Entertainment joins $8m funding round for Web3 K-Pop agency Modhaus

Ok-Pop powerhouse SM Leisure, by means of its enterprise capital arm SM Tradition Companions, took half within the $8 million collection A funding spherical of Modhaus, a South Korean startup on the intersection of blockchain know-how and the Ok-Pop business.

The funding, led by US enterprise capital agency Sfermion, goals to additional Modhaus’ aim of integrating blockchain into numerous facets of the Korean leisure world, crypto media group The Block reported Monday (November 13), citing an organization assertion.

The funding spherical additionally noticed participation from different buyers, together with Seoul-based Laguna Funding, Japan’s KDDI Open Innovation Fund III, and Singapore-based Foresight Ventures, which recently acquired The Block.

Established in December 2021, Modhaus is understood for creating the Ok-pop lady group tripleS, which has amassed over 1.74 million subscribers on YouTube and practically 820,000 monthly listeners on Spotify. Their observe, Technology, has been streamed practically 35 million times on Spotify.

The corporate’s newest monetary injection comes because it plans to launch the world’s first Ok-pop artist made and operated by its followers, in line with its website.

“By accumulating NFT-format photocards of their favourite idol members, followers obtain utility tokens that allow them to take part in choices associated to group operations, such because the actions of members, title songs, album jacket photograph shoots, and deciding on the town for these actions.”

Modhaus

Modhaus’ Ok-Pop method lies in its non-fungible token (NFT) voting system. By way of Modhaus’ COSMO app, followers should buy NFT photocards, which they’ll use as voting tokens.

“By accumulating NFT-format photocards of their favourite idol members, followers obtain utility tokens that allow them to take part in choices associated to group operations, such because the actions of members, title songs, album jacket photograph shoots, and deciding on the town for these actions,” Modhaus was quoted by The Block as saying.

Jaden Jeong, CEO and co-founder of Modhaus, pressured the significance of fan involvement, saying Ok-pop followers usually possess eager insights.

“With their sharp eyes for expertise and trendspotting, we purpose to boost artist worth by means of amplified fan involvement,” Jeong mentioned.

The transfer aligns with broader business development as main Korean music labels discover the potential of blockchain know-how and the metaverse. HYBE, which manages BTS and SEVENTEEN, launched its NFT platform Momentica in October 2022 in collaboration with Korean blockchain agency Dunamu.

“Simply as media and streaming have reworked the music business, it’s anticipated that web3 would be the subsequent recreation changer for the music business.”

Simon Kim, Hashed

Final month, Momentica rolled out an NFT assortment that includes movies and images of SEVENTEEN when the group dropped their new album, Seventeenth Heaven. 

Simon Kim, CEO and Managing Companion of Hashed, an investor and incubator of Modhaus, sees blockchain know-how because the “subsequent recreation changer” for the music business. 

“Simply as media and streaming have reworked the music business, it’s anticipated that web3 would be the subsequent recreation changer for the music business,” Kim was quoted by The Block as saying. 

GD Kim, COO of UNOPND, a enterprise division of Hashed, counseled Modhaus for driving mass adoption of blockchain know-how within the leisure business. Kim reportedly advised The Block that just about 130,000 followers have purchased 1.2 million digital photograph playing cards on COSMO since its launch.

“Modhaus has demonstrated a primary instance of driving mass adoption of blockchain know-how within the leisure business,” Kim mentioned.

SM Leisure’s funding in Modhaus comes because the Ok-Pop company additionally seeks to capitalize on the adoption of blockchain within the music business. In February 2022, SM expanded its metaverse ambitions to the blockchain and NFTs by means of a strategic partnership with cryptocurrency alternate Binance.

They’d agreed to construct  a “complete partnership” to ascertain, what they name, a worldwide Play2Create (P2C) ecosystem.

Music Enterprise Worldwide