Last week’s Korea Blockchain Week (KBW) event had a distinct focus on the rise of blockchain innovation within the gaming industry, an evolution from last year’s more mainstream pomp. With homegrown innovation leading the charge, numerous gaming applications, including arcade and racing apps built on established networks such as Ethereum, Solana, and Cosmos, were showcased at the event.
However, the event was clouded over by the downfall of Terra, a blockchain heavily rooted in Korea, which saw its tokens surge to a spectacular market capitalization of $40 billion before crashing spectacularly. This significant event has caused the industry to scrutinize local projects more intensely, resulting in increased skepticism among retail investors.
While Terra’s implosion has seemingly dented the industry’s trust, it appears to have served as a wake-up call for institutions and corporations, eliciting a strategic shift towards real-world use-cases and reduced reliance on market conditions.
On the flip side, mainstream banks and institutions in Korea are cautiously wading into crypto custodianship, fostering relationships with foreign counterparts to bolster their capabilities. A notable example of such collaboration is the strategic business agreement between commercial bank Hana Bank and crypto custodian BitGo, based in California.
Interestingly, despite the skepticism and challenging landscape, trade activity seems to be on the rise in local exchanges, augmenting the interest of traditional businesses. A testament to this was local exchange UpBit recording an impressive $2.5 billion in transactions within a 24-hour span, spurred by a court case involving Ripple Labs.
Diffusing into the realm of online gaming, Korean game publisher Neowiz announced its intention of leveraging the Avalanche blockchain to develop games, citing the enormous potential for blockchain gaming in the esports-loving country. However, there’s a discernible counter point that beleaguers the hype around blockchain-based gaming. Paraphrasing Astar’s Hoon Kim, the gaming sector struggles to produce a runaway hit, with the most popular blockchain games only garnering a few hundred to a thousand users.
At its core, crypto is a global business and reducing it to regions could essentially reduce its liquidity. The success of a crypto product is directly proportional to its global acceptance and use. However, despite this, the success of blockchain development in Korea continues to be primarily localized. Some suggest this could eventually lead to a risk of crypto products becoming abandoned or obsolete. All in all, through the ups and downs, the Korean blockchain industry seems to be striving to make a mark on the world crypto stage.
Source: Coindesk
