Kakao, Korea’s largest social media platform with over 50 million daily active users, is targeting the blockchain-based beauty contents market. After announcing its entry into the blockchain market, Kakao’s subsidiary, Kakao Investment, executed an enormous investment in Cosmochain, a blockchain-based beauty platform.
Cosmochain is planning to launch its first beauty social media application, COSMEE, on the 20th of August. As a project incorporating blockchain technology into real beauty life, the COSMEE platform will potentially attract in vast number of users, hence, is expected to become the first blockchain-based service of Kakao.
Kakao Investment executes enormous investment in Cosmochain
According to related industry sources on the 10th of August, Kakao Investment recently executed an investment in Cosmochain. Although the precise scale of investment and detailed contents of the agreement were not disclosed, it is estimated that Kakao invested at least several billion won.
A Kakao official said, “We have made investments in Cosmochain, but the scale and details of agreement will not be disclosed.”
Kakao Investment is one of the main investment companies of Kakao. Compared to Kakao Ventures, another investment subsidiary of Kakao, that utilizes external LP funds as well, Kakao Investment purely operates on internal funds.
Park Chi Hwan, CEO of Kakao Investments, is also the head of Kakao G, a holding company of Kakao that leads the company’s blockchain subsidiaries including Ground X. While Ground X focuses on developing its blockchain platform, Kakao G aims to search for various services that will run on Ground X.
Meanwhile, Cosmochain is a blockchain-based project that will soon be launching its very own application, COSMEE. Planned to be launched on the 20th of August, COSMEE is a beauty social media platform in which blockchain technology is applied. It has already been recognized as a prospective project in the blockchain business as investments have been made by influential figures such as Seo Jun Kim, CEO of the Korea-based blockchain accelerator, HASHED, and Young Kil Kwon, CEO of the Korea-based venture capital and crypto fund, NEOPLY.
Increasing interest towards collaboration between COSMEE and Kakao
The COSMEE application will reward users with ‘Cosmo Power’ for making interactions within the platform such as uploading contents or voting likes. The rewarded Cosmo Powers can be utilized to purchase products in the COSMEE marketplace or exchanged into Cosmo Coins (cryptocurrency) that can be encashed.
Cosmochain’s blockchain-based beauty social media service, COSMEE
Following Kakao’s investment in Cosmochain, expectations towards the synergy between COSMEE and Kakao are increasing. Some predict that the COSMEE application could possibly be served under the label ‘Kakao Beauty’. Also, COSMEE is anticipated to be one of the various DAPPs to operate on the mainnet of Ground X that is to be launched in the beginning of next year.
For Kakao as well, beauty contents like COSMEE is an attractive field. Kakao, which already has services such as Kakao Hairshop and Kakao Style, has yet to offer a clear service in the beauty area that can be linked to commerce. Moreover, as self-broadcasting is a rising trend in the beauty field, synergy with Kakao TV is also expected.
Ho Won Song, CEO of Cosmochain said, “Cosmochain will be launching the COSMEE application on August 20th and in accordance, will be listed on a Korean exchange.” He added, “As much as we are the first blockchain project to be invested by Kakao, we will plan various strategies to create significant synergy with Kakao.”