Explainer | NFTs and cryptocurrency draw K-pop labels behind BTS, Blackpink, Twice and other groups as they seek new ways to persuade fans to part with their money

Already in November the labels of K-pop supergroups BTS, Blackpink and several other acts have announced partnerships with cryptocurrency and NFT issuers

Labels will tempt K-pop fans to invest in these ventures by dangling the prospect of privileged access to their favourite stars, as they do with albums

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Tamar Herman

Published: 9:15pm, 10 Nov 2021Updated: 8:07pm, 17 Nov 2021

Corrected [4:24pm, 11 Nov, 2021]

[4:24pm, 11 Nov, 2021]
NFT issuer Featured is not a South Korean platform.

Like Facebook, K-pop-focused entertainment companies based in South Korea are jumping on popular digital trends.

These include creating their own metaverses and crafting virtual stars. At the heart of many of these initiatives is the rise of cryptocurrencies and non fungible-tokens (NFTs).

Cryptocurrencies such as bitcoin and Dogecoin have been popularised as an alternative to traditional monetary formats, providing lucrative opportunities for tech-savvy investors.

With the rise of NFTs this year, especially in the entertainment and art fields, as a way to sell transferable, blockchain-based digital records of ownership for pieces of digital artwork, it was only a matter of time before K-pop bought into the trend.

Following rumours of companies such as BTS’ management Hybe Corp launching NFTs, and Hybe denouncing efforts to persuade the group’s fans to invest in cryptocurrency using the band’s brand without permission, November has seen major K-pop labels announce plans to embrace these very technologies.

On November 4, Hybe said it was partnering with the largest cryptocurrency operator in South Korea, Dunamu, which hosts the popular cryptocurrency exchange Upbit, to launch a joint venture focused on creating and marketing NFTs tied to Hybe’s roster of artists. These include not only K-pop stars such as BTS but also Justin Bieber, Ariana Grande and many others.