Jacquelyn Melinek

<div id="highlights-block_61eaf53f990ac" class="highlights">
 <ul>
 <li>“I’m very much keen to believe that Korea is positioned to become one of the biggest metaverse players,” said Alex Salnikov, co-founder and head of product at Rarible</li>
 <li>“I think on a national level they are playing into their strengths,”Garrette David, Co-founder of Atomic Form, said to Blockworks</li>
 </ul>
 
</div>



South Korea is looking to push itself to the forefront of the metaverse, according to a road map shared by the country’s Ministry of Science and Information and Communications Technology (ICT). Some market players believe that crypto-focused gaming is its ticket to become a global leader in this space, and Seoul is a hotbed of gaming activity.&nbsp;



The country is currently the 12th largest metaverse market, but plans to jump seven places to hit the fifth largest by 2026, it said. The plan is a part of its Digital New Deal 2.0 initiative to respond to disruptive innovation, emerging new technologies and be prepared for the future.



The metaverse is an uncharted digital new continent with infinite potential, where anyone can achieve their dreams, Minister Lim Hyesook expressed in a translated statement.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“In particular, [the] metaverse will become a place where the youth can take up more challenges, grow and leap forward [to] a greater world.”</blockquote>



The country said the metaverse has the potential to create 1.5 million jobs not related to the physical world and plans to produce over 40,000 experts in the space to push the country into the top of the global metaverse market.&nbsp;



“I think on a national level they are playing into their strengths,” Garrette David, Co-founder of <a href="https://cms.blockworks.co/heres-why-one-company-ventured-into-the-metaverse/" target="_blank" rel="noreferrer noopener">Atomic Form</a>, said to Blockworks.&nbsp;



“From a blockchain perspective, it&#8217;s super cool because we see <a href="https://cms.blockworks.co/fraud-funding-woes-and-a-president-who-wont-quit-el-salvadors-bitcoin-experiment/" target="_blank" rel="noreferrer noopener">El Salvador</a> interested in Bitcoin as a currency. And we see Korea really interested in the metaverse, which is more a way to change consumerism and interface with digital objects rather than hoard stores of value. So it&#8217;s really cool to see how different geographies are embracing Web3 in ways that are special to them,” David added.&nbsp;



The Web3 and metaverse-focused startup Atomic Form has a lot of interest and investors from South Korea like <a href="https://cms.blockworks.co/the-sandbox-parent-animoca-brands-raises-359m-to-build-out-open-metaverse/" target="_blank" rel="noreferrer noopener">Animoca Brands</a>, Nonce, Samsung Next and some DAOs from the Korean art scene, David said.&nbsp;



<h3 class="wp-block-heading">Korea is geared toward gaming&nbsp;</h3>



The metaverse is a virtual world often coupled with NFTs, play-to-earn or crypto gaming and blockchain-based communities, as it often combines digital realities with online experiences like <a href="https://cms.blockworks.co/axie-infinity-program-lead-2022-will-be-all-about-gameplay/" target="_blank" rel="noreferrer noopener">Axie Infinity</a>. South Korea is known for its early adoption of new technologies like cryptocurrencies or play-to-earn gaming and has one of the biggest gaming industries in the world.&nbsp;



“Several years ago South Korea became one of the key markets for cryptocurrency itself when other people were skeptical about it,” Alex Salnikov, co-founder and head of product at Rarible, said to Blockworks. 



The country has a very vibrant gaming community with a lot of secondary markets, which made it very susceptible to the whole idea that “magic internet money” like cryptocurrencies, can go into their games, Salnikov said.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“I’m very much keen to believe that Korea is positioned to become one of the biggest metaverse players,” Salnikov noted.&nbsp;</blockquote>



Last month, Kihyun Jung, the country director for Korea at <a href="https://cms.blockworks.co/report-meta-will-incorporate-nfts-into-ambitious-metaverse-plans/" target="_blank" rel="noreferrer noopener">Meta</a>, formerly known as Facebook, shared a similar sentiment. Jung <a href="https://money.yahoo.com/meta-praises-south-korea-metaverse-114338800.html" target="_blank" rel="noreferrer noopener">said</a> the country was one of the best environments for the metaverse to thrive in due to its receptivity and penetration rate for virtual reality devices like Oculus Quest. The country has also said that Seoul will become the first major city to enter the virtual reality realm by 2023.&nbsp;



In general, the overall gaming market in South Korea is projected to be valued at $18.3 billion this year, according to <a href="https://www.statista.com/statistics/825058/south-korea-gaming-industry-size/" target="_blank" rel="noreferrer noopener">data</a> from Statista. While this accounts for the whole industry and not just metaverse-related games, this number has been steadily growing since 2007, showing South Korea’s presence in gaming is strong year-over-year.&nbsp;



“There’s such a strong gaming culture in South Korea and their distribution channels are a lot more centralized there,” Andrew Campbell, a program lead for Esports and content creator programs at Sky Mavis (the company that develops Axie Infinity), told Blockworks.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“I think that will set the precedent for companies that do distribution in South Korea to figure out what this interface looks like and distribute it and run with it, which might give confidence to other regulatory bodies or give them the framework to look at it in motion,” he added.&nbsp;</blockquote>



But as with many new technologies and ideas, building can take time. “Building is slow in this space, and part of the reason why it’s slow is security matters so much,” Campbell said.&nbsp;



“So you have to build everything with quality in mind first. You can’t compromise or shift things early,” Campbell added.&nbsp;



Blockworks’ Reporter Morgan Chittum contributed to this article.

South Korea Could Take Over the Metaverse Through Gaming, Industry Players Say

Morgan Chittum

<div id="highlights-block_61390cdad6d5b" class="highlights">
 <ul>
 <li>Atomic Form’s digital frame connects directly to the blockchain through its hardware module, to allow users to display and lend their NFTs</li>
 <li>The New York-based company’s ultimate goal is to “create a hub for metaversal participation regardless of chain, product, or issuer&#8221;</li>
 </ul>
 
</div>



The metaverse is often used to describe the successor to the mobile internet where the physical and digital worlds converge in a shared virtual space. In the metaverse, technology is an all encompassing reality and not solely a tool like the rectangular device in your pocket.



Compare the metaverse to a video game like Fortnite. Players have digital avatars and seamlessly roam from one world to another, purchasing virtual goods and participating in this virtual economy.



Lately, the metaverse has resurfaced in mainstream headlines following Facebook’s <a href="https://lumen.webcasts.com/viewer/event.jsp?ei=1479236&amp;tp_key=719cb3578f" target="_blank" rel="noreferrer noopener">earnings call</a> in July when CEO Mark Zuckerberg used the term 20 times during the hour-long presentation. Then, Zuckerberg told employees, investors and analysts that Facebook aims to be more than an interconnected set of social media applications. Instead, it will be a “metaverse company.”&nbsp;



In the coming years, Zuckerberg said the tech giant would continue selling their virtual reality products like Oculus headsets for a lower price point, but generate future revenue through advertising and digital commerce within the metaverse itself.



In a recent step into this virtual space, Facebook’s Financial Head David Marcus said the company’s soon-to-be launched digital wallet, Novi, could someday<a href="https://cms.blockworks.co/facebooks-novi-digital-wallet-could-support-nfts-in-future-exec-says/" target="_blank" rel="noreferrer noopener"> store holders’ NFTs</a>.



<h3 class="wp-block-heading">Monetization within the metaverse</h3>



When it comes to monetizing what seems a distant and vague concept depicted by Zuckerberg, consider Fortnite again. Epic Games, Fortnite&#8217;s parent company, <a href="https://www.pcgamesn.com/fortnite/fortnite-revenue-2018" target="_blank" rel="noreferrer noopener">generated $3 billion</a> in 2018, selling accessories and non-functional skins in their video games to characters. Epic now has an equity valuation of $28.7 billion, the company said in a <a href="https://www.epicgames.com/site/en-US/news/announcing-a-1-billion-funding-round-to-support-epics-long-term-vision-for-the-metaverse" target="_blank" rel="noreferrer noopener">statement</a>.&nbsp;



Along with Facebook and Epic, widespread adoption of non-fungible tokens (NFTs) <a href="https://cms.blockworks.co/opensea-hits-3b-in-monthly-nft-volume/" target="_blank" rel="noreferrer noopener">continues</a> as other big-name institutions like <a href="https://cms.blockworks.co/visa-steps-into-the-metaverse-with-first-nft-purchase/" target="_blank" rel="noreferrer noopener">Visa</a> dip their toes into the water of the metaverse.&nbsp;



According to BitMEX Co-founder Arthur Hayes, NFT purchases today may seem arbitrary, but people will always want an identity or sense of self — the biggest change is that now, more of their identity is stored online. An increased demand for digital collectibles (or NFTs) results from this need for social signalling. Essentially, dropping a grand on a Fortnite character costume, a pair of Balenciaga sock sneakers or paying 3 ETH for a <a href="https://cms.blockworks.co/opensea-hits-3b-in-monthly-nft-volume/" target="_blank" rel="noreferrer noopener">cartoon mutant ape</a> all support the same purpose, he wrote in a <a href="https://cryptohayes.medium.com/rock-paper-scissors-says-go-a3641dfe132c" target="_blank" rel="noreferrer noopener">Medium</a> blog post.



“NFT-permissioned art is completely worthless from an energy standpoint, but it will represent the ultimate way to Flex social standing in a purely digital world,” Hayes wrote. “While it seems silly to those who think Art Basel and The Venice Biennale are the epitome of gatherings of like-minded cultured individuals, infinitely replicable JPEGs traded on the blockchain are no sillier than squiggles on a piece of canvas.”



Click on Page 2 below to keep reading.







<h3 class="wp-block-heading">One start-up’s venture into the metaverse</h3>



A frothy summer for NFTs has led big-name companies to both question and incorporate the asset class into their future business plans. However, <a href="https://atomicform.com/" target="_blank" rel="noreferrer noopener">Atomic Form</a>, an early stage start-up, aims to be a “window to the metaverse” from the get-go.&nbsp;



The hardware and software solutions company is first entering the metaverse through its crypto art display frames, co-founder Garrette David told Blockworks.&nbsp;



“If you spend money on a Monet, you&#8217;re not going to have that in your house in Hong Kong, London and Singapore at the same time. It&#8217;s going to be in one place,” David said. “[But] that&#8217;s actually why you own it because there&#8217;s only one of them. We design this kind of product that pays homage to the fact that there can only be one of these [artworks] or if there are multiple, that you’re able to authenticate that it comes from the contract.”



Atomic Form’s 27-inch digital display connects directly to the blockchain using its hardware, ensuring that all NFTs are verifiably owned. NFTs have a unique address that connects directly back to their owner, which means that users cannot connect any downloaded image and cast it on their frame.



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="414" height="238" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Growth-Install.jpeg" alt="Atomic Form" class="wp-image-7687" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Growth-Install.jpeg?w=414 414w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Growth-Install.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Growth-Install.jpeg?w=381 381w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/Growth-Install.jpeg?w=80 80w" sizes="auto, (max-width: 414px) 100vw, 414px" /><figcaption>Slimesunday&#8217;s NFT series What the Fork? featuring Atomic Form&#8217;s hardware; Source: Atomic Form</figcaption></figure></div>



Users attach their crypto wallets to Atomic Form’s hardware, also allowing them to lend out their NFTs for a customizable set rate over Ethereum’s blockchain to other display owners.&nbsp;



Co-founder David is a former bitcoin miner and neuroscience researcher at Columbia University Medical Center. He has been interested in exploring the economics and mechanism of design of blockchains for a decade.



<h3 class="wp-block-heading">‘Creating a metaversal hub’</h3>



Atomic Forms’ mission isn’t just to monetize crypto art as a means to generate returns or cut down on merchandising costs as utilizing NFTs generally does, according to David. The company’s module is just one step toward their “ultimate goal which is to create a hub for metaversal participation regardless of chain, product, or issuer.”



“A more exotic example would be if you transferred [a NFT] out of a wallet, and then that affected how the piece was displayed or just how the smart contract lives because it&#8217;s like clay, The smart contracts are really like clay,” David said. “People don&#8217;t appreciate that from the exhibition perspective so we made this company so they could have that ability.”



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="500" height="274" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/L1050232-1.jpg" alt="Atomic Form founders" class="wp-image-7691" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/L1050232-1.jpg?w=500 500w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/L1050232-1.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/L1050232-1.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/L1050232-1.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/L1050232-1.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/L1050232-1.jpg?w=80 80w" sizes="auto, (max-width: 500px) 100vw, 500px" /><figcaption>Atomic Form&#8217;s Co-founders Isabelle Kitze (left) and Garrette David; Source: Atomic Form</figcaption></figure></div>



Co-founder Isabelle Kitze was a former crypto and blockchain journalist, serving as the editor-in-chief at CryptoMania News in 2017. Prior to that, she studied fine art marketing at NYU and worked in product development at Jonathan Adler.



“I think that people are just inherently looking for a solution to display their NFTs and the fact that you can only show you verifiably own it is a huge win for a lot of people,” Kitze told Blockworks.&nbsp;



<h3 class="wp-block-heading">Evolving over time</h3>



Atomic Form was recently featured in <a href="https://slimesunday.com/" target="_blank" rel="noreferrer noopener">Slimesunday’s</a> NFT series What The Fork? at Phillips auction house last month. Phillips used Atomic Form’s photon for the exhibition. The photon allows a digital display to connect directly to the blockchain to render data, meaning that each time the NFT replaces, repeats and changes, the screen will reflect this in real time in front of its audience at the exhibition.



As of now the company may be known for its crypto art display, but there is more to come for Atomic Form, according to Kitze. She added that there will be funding announcements and product updates in the coming months.



“I would say over the next year, we&#8217;re looking forward to providing not only hardware solutions, but also software solutions of every scale and kind for the NFT space. And it will go beyond art, which is really exciting,” Kitze said.



<hr class="wp-block-separator"/>



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<hr class="wp-block-separator"/>

Here’s Why One Company Ventured Into the Metaverse

<div id="highlights-block_6123d07c94f11" class="highlights">
 <ul>
 <li>Visa’s Head of Crypto said CryptoPunk has become a “cultural icon for the crypto community”</li>
 <li>Digital asset bank Anchorage Digital facilitated the NFT purchase, the company said</li>
 </ul>
 
</div>



Visa took a step into the metaverse with its first non-fungible token (NFT) purchase. The company bought <a href="https://www.larvalabs.com/cryptopunks/details/7610" target="_blank" rel="noreferrer noopener">CryptoPunk #7610</a> for $150,000 in ethereum last week, benchmarking Visa as the first major payment card network to start an NFT collection.&nbsp;



The main goal of the purchase is to help the company and their clients understand the burgeoning NFT market, according to Visa&#8217;s Head of Crypto Cuy Sheffield. “To help our clients and partners participate, we need a first-hand understanding of the infrastructure requirements for a global brand to purchase, store, and leverage an NFT,” he wrote in a company <a href="https://usa.visa.com/visa-everywhere/blog/bdp/2021/08/18/nfts-mark-a-1629328216374.html" target="_blank" rel="noreferrer noopener">blog post.</a>&nbsp;



Launched by Larva Labs in 2017, CryptoPunks are considered some of the first NFTs in the space. Ranging from $80,000+ in value, there are roughly 10,000 different CryptoPunks, which Sheffield describes as a “cultural icon for the crypto community.”



Visa’s CryptoPunk #7610, which resembles a young woman with a green mohawk, is its first step into the NFT commerce world — but probably not the last, the payment giant said.&nbsp;



“We think NFTs will play an important role in the future of retail, social media, entertainment, and commerce,” Sheffield wrote in the blog. “We’re a company steeped in the history of commerce and payments — but with our eyes on the future. With our CryptoPunk purchase, we’re jumping in feet first. This is just the beginning of our work in this space.”



In a note to Blockworks, he added, “NFTs are a new form of commerce, and enabling commerce is at the core of what we do at Visa. We’ve played a role in major commerce transformations over the past 60 years, and purchasing a CryptoPunk is an exciting next step in this journey. As we continue to explore the space, we’re thrilled to now own a piece of internet and NFT history. We may be one of the first major brands to purchase a CryptoPunk, but we certainly won’t be the last.”



Atomic Form co-founder Garrette David said the payment processing giant could also be trying to appeal to younger demographics that own crypto assets through the publicly announced NFT purchase.&nbsp;



“It’s definitely in line with what I would call a new generation client outreach program by S&amp;P 500 companies. It&#8217;s just a purchase, right? It&#8217;s just different [because] they&#8217;ve made it publicly known,” David told Blockworks. “I think they are going to be a member of the metaverse, broadly. It will be interesting to see them take advantage of all the ways that they could participate using the CryptoPunk that they bought.”&nbsp;



<h3 class="wp-block-heading">NFT market keeps the heat on</h3>



Visa is just one of many big name institutions to dip its toes in the NFT world. In March, Christie’s sold a non-fungible token by the artist Beeple for over $60 million. Separately, <a href="https://cms.blockworks.co/binance-to-debut-nft-marketplace-with-warhol-dali-thursday/" target="_blank" rel="noreferrer noopener">Binance launched a NFT marketplace</a> with an auction showing works of Salvador Dali and Andy Warhol.



OpenSea, one the largest NFT marketplaces, reached over $1 billion in sales in August, according to <a href="https://coinmetrics.substack.com/p/coin-metrics-state-of-the-network-f5c" target="_blank" rel="noreferrer noopener">Coin Metrics Network Data</a>. One anonymous buyer purchased 104 CryptoPunks for $7 million in a single <a href="https://etherscan.io/txs?block=12929843&amp;ps=100&amp;p=3" target="_blank" rel="noreferrer noopener">block</a> on July 31.



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