SM Entertainment has been investing in its version of the metaverse for a while now.
The company expanded into the rising virtual artist space in October 2020 with the launch of aespa – a ‘Metaverse Girl Group’ featuring four human members and four virtual counterparts.
At the centre of SM’s content strategy is the SM Culture Universe (SMCU), which according to CEO Sung Su Lee, is a “massive virtual world that starts with aespa’s storytelling”.
Now, SM is expanding its metaverse ambitions to the blockchain and NFTs, via a strategic partnership with cryptocurrency exchange Binance.
Binance and SM Brand Marketing (SMBM), a subsidiary of SM Entertainment, have signed a Memorandum of Understanding to build what they call a “comprehensive partnership” to establish, what they call, a global Play2Create (P2C) ecosystem.
Binance and SMBM will be working jointly on the blockchain mainnet, NFTs, and a new ‘eco-fund’ to establish the P2C ecosystem.
The partnership will begin in the NFT sector according to a media statement, allowing users to “recreate content and products in the forms of games, music, dance, and goods,” by using “the tools and IP provided within the e-commerce and metaverse platforms”.
SM says that this content can then be converted into NFTs within this so called ‘P2C ecosystem’. The company adds that this will allow “users to earn profits while also gaining recognition for their originality”.
Binance will also provide the technology infrastructure for the overall blockchain and NFT ecosystem.
Meanwhile, SMBM will provide the vast artist IP managed by its SMBM subsidiary, from the likes of NCT, aespa, EXO, Red Velvet, and more, and support with content planning and platform construction.
“The P2C ecosystem created through the recreation will also enhance the creative culture within the K-pop industry,” adds SM in a statement.
“Fans, artists, and companies are brought together to join forces on these e-commerce and metaverse platforms”.
“Binance is happy to be working with SMBM to advance the current P2E ecosystem into a P2C ecosystem.”
Helen Hai, Binance
Helen Hai, Global Head of Binance NFT, 1said: “Binance is happy to be working with SMBM to advance the current P2E ecosystem into a P2C ecosystem.
“We would like to provide SMBM with the robust technology that can support the numerous Kpop global fans who enjoy recreating content based on their favorite Korean celebrities and want to earn passive income through their hobbies.”
“SM is creating various metaverse-oriented content IPs through SMCU (SM Culture Universe) which includes Metaversal Origin Stories.”
Sung Su Lee, SM Entertainment
Sung Su Lee, CEO of SM Entertainment, said: “SM is creating various metaverse-oriented content IPs through SMCU (SM Culture Universe) which includes Metaversal Origin Stories.
“By combining together SM’s production capabilities, SMBM’s e-commerce platform capabilities, and Binance’s technology infrastructure, we expect this comprehensive partnership will bring great innovation in the establishment of the P2C ecosystem and expansion of businesses in the blockchain industry.
“It is also an opportunity for fans to build a new participatory creation culture through recreation and to gain economic benefits by being on the blockchain.”Music Business Worldwide