이 기사는 2022년 02월 28일 08시09분 thebell에 표출된 기사입니다

SM Brand Marketing (SMBM), a subsidiary of a South Korea’s entertainment giant SM Entertainment, has partnered with the world's largest digital asset exchange Binance to establish a global Play-to-Create (P2C) non-fungible token (NFT) ecosystem.

SMBM announced on Wednesday that it signed a memorandum of understanding with blockchain ecosystem and cryptocurrency infrastructure provider Binance to build a comprehensive partnership.

As part of the partnership, SMBM and Binance will establish a global P2C ecosystem. The partnership will begin with cooperation in the NFT sector.

P2C allows users to reproduce contents using intellectual property (IP). By using the tools and IP provided within the e-commerce and metaverse platforms, users can recreate content and products in the forms of games, music, dance, and goods. Within the P2C ecosystem, these contents and products can be converted into NFTs, allowing users to earn profits while also gaining recognition for their originality. The P2C ecosystem is a step forward from the existing Play-to-Earn (P2E) model.

Earlier this month, Binance also announced its partnership with YG Entertainment, the company behind popular K-pop groups Blackpink and Big Bang. Binance is said to have been actively approached by the two Korean entertainment giants.

Market insiders widely see Binance would have been the best option for SM Entertainment as it boasts the best accessibility for fans worldwide. Binance had more than 28 million users as of the end of October 2021, which is estimated to be 30 million now. Binance has been the largest cryptocurrency exchange by volume since 2018 with a peak 24 hour trading volume of $76 billion (91 trillion won).

Binance currently provides services in more than 20 languages including English, Chinese and Taiwanese. This is expected to lure more K-pop fans worldwide.

“(SM Entertainment) has to share its partner with its rival, but Binance would have been the best option for the company to sell NFTs to global fans,” an industry source said. “Domestic companies continue to tap Binance.”

SMBM also has partnered with The Sandbox. The two firms will work together to create a P2C ecosystem in The Sandbox gaming metaverse. The Sandbox has over 200 existing partnerships including Snoop Dogg, Steve Aoki and Warner Music Group.

With The Sandbox, SMBM will establish a metaverse platform called SM TownLand, a specialized area for Korean content where fans can gather for concerts and other events.

SM Entertainment raised 100 billion won from Naver in 2020 and said it would collaborate with the tech giant’s various platforms including avatar app Zepeto. (Reporting by Yun-ju Roh)