The “klay” token of South Korean messenger giant Kakao, the native cryptocurrency of its recently launched Klaytn blockchain, will soon make its first official exchange listing on the Upbit platform.
Ground X, the company created by Kakao to develop the Klaytn network, announced the news in a Medium publication on September 5, saying that klay will appear on Upbit platforms in Singapore and Indonesia later this month.
Upbit Singapore revealed on September 6 that Klay will appear on the list after the discovery of prices through a Dutch auction, in which the price is reduced until buyers are found, on September 18.
The auction will last 12 hours, or until a maximum limit has yet to be determined. Subsequently, successful bidders will receive their klays on September 19. A commercial klay / bitcoin pair will be enabled at a future date.
The exchange added that Upbit and Klaytn will not benefit from the auction and Upbit will “redistribute all profits” to users in the future.
Kakao has not answered CoinDesk’s questions about how it plans to redistribute revenues and how much klay cryptocurrency it will make available for auction. The exchange said a total of 10 billion klay will be distributed until 2021 in monthly tranches ranging from 29 million to 278 million tokens.
The news that Upbit is the first platform to list Klay may not be surprising given the close association of the two entities. Based in South Korea, Upbit is an encryption exchange operated by Dunamu, a firm backed by Kakao.
In his announcement, Upbit said that in a private sale in December 2018, Klay was priced at $ 0.03 per unit. Later, in April 2019, a private sale saw that the cryptocurrency reached $ 0.08 each. According to reports, Ground X raised $ 90 million in a private coin offer this spring.
It may seem unexpected that Klay is launched first in Singapore and Indonesia, and not in the home nation of Upbit and Kakao. However, the listing announcement follows press reports that suggest that Klay would have trouble quoting in South Korea, where initial coin deals are banned.
Kakao image via Shutterstock