The South Korean company Kakao will hold a private ICO. According to local media reports, Kakao chose this model as a compromise solution that would allow it to attract big investors, without violating the constraints on the conduct of the initial placement of tokens in South Korea. It is expected that the total fees will be $300 million; allegedly, this round will also participate the venture with companies from China, Japan and the USA.

How to write Korean business newspaper Hankyoreh, the collected funds will be used to develop and release native token blockchain platform Kakao, Klaytn. “Closed” ICO means that the tokens Klaytn will be able to purchase only a registered and licensed institutional investors. As a rule, the holding of the closed investment rounds are considered risky because startups need to be sure that they will be able to attract financing companies of large scale. Nevertheless, Kakao, as the material Hankyoreh, initially tried to establish contact with the leading venture businesses, including abroad:

“Designated amount of $300 million, and Kakao pretty close to your goal. One of the senior staff of the Chinese venture capital firm, met with representatives of [the subsidiary Kakao] Grand X in September, and even then, Ground X was going to collect just that amount.”

Work with foreign investors for Kakao has become a key factor in selection of models for ICO, since the closed mode is the only way to comply with national legislation, and the laws and regulations in other countries. In addition, in accordance with the legal situation in South Korea, formally the initial placement will hold the subsidiary company of the developer Klaytn Ground X was in Japan.

In the Japanese market, the main competitor of Kakao is the operator of the popular messaging application Line. In late August, the Line has launched its own token LINK. The token can be used in 94 000 outlets in the country, as well as within peripheral services messenger.