According to a report by Reuters, Kakao, the firm that operates the largest messaging application in South Korea has made a substantial investment in Israeli blockchain startup Orbs.
While political commentators have long made much of the two countries’ common grounds in policy, little has been said about the possibility of a technological collaboration between the two. However,The Jerusalem Post, in an op-ed piece last month, had this to say about the two countries:
“They are both young nations born out of war, now grown into high-tech economies reliant on no natural resources but the minds of their people.”
Although the comment was made in passing as a tangent to the question of a possible military alliance, this line raises hopes. It hints to the readers how well the two countries could cooperate in the world of tech. And now, with the announcement of Kakao’s investment in Orbs, we have a firmer basis for such hopes.
Coming to the details of the investment in question, the press has not been intimated of the exact amount put forward by Kakao. Instead of disclosing the amount it received from the messaging app operator, Kakao’s Israeli beneficiary chose to focus on their existing relationship with a Kakao subsidiary. They said, in their blog post:
“(This investment) builds on its existing partnership with Kakao blockchain subsidiary Ground X.”
However, although Reuters has confirmed that there has been no reliable intimation regarding the amount invested, some media houses have estimated the amount as being close to $15 million, raised with the help of Kakao in its fundraising round.
About the Parties:
Kakao Corp is a company that controls Kakao Talk, the most popular mobile messaging app in South Korea. It has a large user base and controls a significant chunk of the market share. Kakao Corp has several subsidiary bodies and has dabbled in several aspects of the tech world, including the up and coming technology of AI (Artificial Intelligence). The conglomerate’s venture arm, Kakao Investment, reportedly reached out to Orbs and made the investment.
Orbs Blockchain Startup
Orbs is a blockchain startup that is trying to use blockchain technology to build a second layer for dApps that combines a unique scalability with the liquidity that is usually found in the base layer.