According to reports from top websites for crypto news, South Korea might be leading again in the blockchain industry since the citizens have been trying to adopt the NFTs at a pretty huge rate.
The reputation of South Korea as a leader in technology is definitely moving forward in blockchain technology as more and more people are trying to invest in non-fungible tokens or NFTs. In the small East Asian country, the adoption rates for NFTs might just be the highest.
Reasons Behind South Korea’s Interest in the Adoption of NFTs
There could be different possible reasons why South Koreans have such eagerness when it comes to NFTs. Retail consumers are exposed along with the general public regarding the idea of NFTs. These are not just a medium to say thanks for making a purchase. This is the idea presented by Strategy Lead at the Korea-based KlayChicken NFT project, Alex Lim. He told Cointelegraph today “NFTs are all the rage but a lot of people don’t even know why.”
“The NFT hype in South Korea stems from a mixture of sentiments… I believe that in the second half of the year, the time will come when the whole South Korean NFT industry takes a quantum leap.”
One reason that may contribute to this quantum leap is the lack of a tax on digital assets in South Korea. The crypto tax has been delayed until 2023, but president-elect Yoon Seok-yeol may push to delay that tax for yet another year to 2024.
Additionally, NFTs are not regulated as stringently as cryptocurrency is now. Although local financial regulators at the Financial Services Commission (FSC) are working to introduce new NFT rules, none yet exist. This has kept the market open to be filled by a litany of new marketplaces at exchanges such as Upbit and Bithumb and from other corporations such as gaming, giant Krafton to profit from NFTs.
Co-founder and CEO at Korea-based blockchain ecosystem accelerator DeSpread GM Chung believes practical use-cases for NFTs will become more common in his country. He told Cointelegraph today that “I expect NFTs to expand into a social on-chain profile layer along with transaction history in the future.”
“Previously, the phenomenon of purchasing NFTs for community participation was done, but recently, the expansion of NFT utilities is considered to be a major reason (for its rise in utilization).” While campaigning, president-elect Yoon issued an NFT collection that followers could mint in order to feel a sense of belonging to his cause.
Content creators appear to be reaping the rewards of increased demand for their services in developing NFT designs for a wide array of companies. A simple search for NFT on the leading job search website JobKorea produces 753 unique positions for content creators and business professionals.
The digital assets those creators make have most commonly been in the form of in-game items or characters, and emojis for text messaging apps. This familiarity with digital assets is why the co-founder of crypto investment firm Stablenode Doo Wan Nam believes Koreans have adopted NFTs so readily. He told Cointelegraph today that “Koreans are more open and understanding when it comes to NFT which is another form of the digital asset.”
Lim mentioned that different businesses as well as content creators are trying to include the NFTs into the business plans that they have after witnessing the utility and the potential of NFTs.
He also added that creating a helpful community to increase brand power “has always been the inevitable, yet difficult task for any content creator.” “NFTs have opened a new horizon for those who seek to materialize an ideal community where there is commitment, passion, and autonomy.”
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