Binance and K-pop record label to produce eco-friendly NFTs
K-pop stars managed by YG include Big Bang, Blackpink, Winner, iKon and AKMU
Binance, currently the world’s largest cryptocurrency exchange by trading volume, has signed a Memorandum of Understanding (MoU) with YG Entertainment, a South Korean multinational entertainment corporation, to create eco-friendly non-fungible tokens (NFTs) related to K-pop music.
Many world-renowned K-pop stars are signed to and managed by YG, including Big Bang, Blackpink, Winner, iKon, AKMU and Treasure.
Binance said: “YG has immense potential to develop NFTs, using their intellectual property (IP) rights in a wide range of business fields.”
Under the terms of the partnership Binance will provide the NFT platform and technology, while YG will provide the NFT content and gaming assets. The two companies also plan to pursue opportunities in the metaverse and other digital assets, “to develop unique experiences and services for fans”.
Why are these NFTs more eco-friendly?
As minting NFTs can cause environmental damage, the two companies are working together to create a greener NFT ecosystem.
Binance NFT uses a proof-of-staked-authority (PoSA) network, a consensus agreement protocol that is more eco-friendly and energy-efficient than the proof-of-work (PoW) system used by Bitcoin (BTC).
As the crypto exchange said: “Creating NFTs in an eco-friendly way is one of the considerations that both companies emphasised during the collaboration.”
The bond between artists and fans
Bo-Kyung Hwang, CEO at YG, said: “As a K-pop leader, we plan to steadily build an innovative and eco-friendly NFT ecosystem. Collaboration with Binance has provided an opportunity for YG to secure royalties and business opportunities for rare and valuable content. We also hope that it could further strengthen the bond between fans and artists.”
Helen Hai, global head of Binance NFT, said: “YG is one of the most well-known global entertainment corporations in the world. Both Binance and YG will strive to further build their leadership in their respective fields. Now that the two companies have joined forces, we can expect to see a strong cooperative relationship being forged.
“We hope that this will support the development of the global blockchain ecosystem, and bring further mainstream adoption of new assets, such as NFTs, to a new user base. Binance will be working closely with YG to create an eco-friendly ecosystem for NFTs. YG is a global entertainment corporation with global influence, and we believe it is important to promote the use of sustainable blockchain platforms.”