Red Velvet's agency partners with Binance to carry out NFT projects

By Kim Joo-heon Posted : February 23, 2022, 15:58 Updated : February 24, 2022, 01:27

[Courtesy of SM Entertainment]

SEOUL -- SM Entertainment, a major entertainment powerhouse in South Korea, tied up with Binance, the world's largest cryptocurrency exchange, to carry out joint projects related to virtual asset businesses such as non-fungible tokens. Users can recreate various contents including games, music and dances in e-commerce and metaverse platforms using intellectual property rights.  
A Non-fungible token (NFT) is a unit of data stored on a blockchain network of interlinked virtual ledgers and each NFT is certified by a blockchain as a unique digital asset. Entertainment companies have shown keen interest in NFTs to turn the intellectual property of artists into digital assets that can be displayed and exchanged in fan communities.
SM's retail business wing signed an agreement with Binance to establish a Play to Create (P2C) infrastructure that allows users to recreate various content and products using IP rights. Users can create their unique content in the metaverse space where anyone can engage in many different social and cultural activities using avatars. The recreated content can be converted into NFTs within the P2C ecosystem, allowing users to monetize their recreation while being recognized for their originality.
"This is an opportunity for fans to create a new participatory culture through recreation and to gain profits based on blockchain," SM Brand Marketing CEO Lee Sung-su said in a statement on February 23. Binance also partnered with YG, SM's rival company, in February 2022 to launch an NFT project. 
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