The largest crypto exchange Binance announced its strategic partnership with SMBM, which is a subsidiary of South Korea’s entertainment business SM Entertainment.
Binance secured its place as the leading cryptocurrency platform with investments and partnerships in several fields outside blockchain technologies including sports and entertainment.
According to the official announcement, Binance and SMBM will be looking to create a global play-to-create (P2C) environment, with initial plans for non-fungible tokens (NFTs), and the "creation of a joint eco-fund."
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During the strategic partnership, the two companies will allow participants to use the artwork and content of creators, K-pop artists, and recreate them in a digital environment, regarded as the "P2C ecosystem."
This ecosystem will fall under the play-to-earn (P2E) category because it will allow fans to participate in the K-pop industry by building various products in the metaverse, which later could be sold as NFTs so participants can profit from their creativity. Such a concept was proposed by the record producer and founder of SM Entertainment Lee Soo-man.
According to the CEO of SM Brand Marketing Sung-su Lee, the strategic partnership with Binance will allow SM to drive fan engagement through the artwork and intellectual property of the creators, stating:
"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."
He added that this will be a great opportunity for fans to participate in the K-pop industry, rewarding their participation with monetary incentives in the form of NFTs.
The Global Head of Binance NFT Helen Hai highlighted the benefits of the P2C ecosystem, and how fans will be able to cherish the K-pop culture by "recreating content based on their favorite Korean celebrities and earning passive income through their hobbies."
This is the second South Korean entertainment company that partnered with Binance. Earlier this month, Binance announced a K-pop NFT and metaverse project with YG Entertainment, which is one of the largest record labels in South Korea.
