Merger of Naver, Kakao-issued coins excites investors

A promotional image for the merger of Klaytn and Finschia / Courtesy of Klaytn

The excitement among "kimchi coin" investors is rising as two major coins, issued by Naver and Kakao, respectively, have recently announced a merger to boost their competitiveness in the global market.

"Kimchi coin" refers to a cryptocurrency that is developed, issued or traded exclusively within Korea.

According to industry sources, Thursday, Klaytn, a layer 1 blockchain platform developed by Kakao, and Finschia, a blockchain platform created by Naver affiliate LINE Tech Plus, are integrating their respective blockchain ecosystems.

This integration represents a complete merger of the two respective blockchain ecosystems into a single entity. This move will enable users to access the infrastructure, services, communities and other features of both systems in one unified platform. Furthermore, it is anticipated that the virtual currencies of both platforms will be consolidated into a single common token.

Both platforms, launched in 2018, have been engaged in intense competition. However, in response to the prolonged recession in the domestic blockchain industry, they have decided to combine their efforts. Referred to as "Project Dragon," their goal is to become the leading blockchain entity in Asia.

The unprecedented large-scale M&A in the virtual asset industry immediately sparked a reaction from coin investors. Following the announcement, there was a surge in buying activity for these coins, resulting in a 30 percent increase in the value of both. As of Thursday, 3:40 p.m., Klayton is traded at $0.2207, while Finschia is traded at $29.3.

Given that there have been no major events in the domestic coin market since the relisting of Wemix last month, this news of the integration seems to have reignited the enthusiasm of coin investors.

"The merger between platforms developed by leading domestic tech giants is a rare event and is attracting considerable interest," an industry official said. "Given the ongoing discussions about the integration, we could see abrupt fluctuations in market prices and trading volumes. Investors are advised to make careful decisions."

Meanwhile, both foundations operating the two platforms have planned to announce details about the integration on Friday, including a question and answer session.