Major South Korean record label HYBE has shuttered its blockchain project Binary Korea less than three years after launch due to poor financial performance.
The Seoul-based subsidiary will merge with HYBE. Meanwhile, the parent company will focus on the entertainment side of business, specifically artist management.
According to AlphaBiz, HYBE stated that the goal of this merger is to “enhance management efficiency.”
The report further alleges that Binary Korea has been quite unprofitable. It reportedly generated only KRW 468,441 ($318) in 2023 and a net loss of KRW 4.28 billion ($2.9 million).
HYBE is home to massive K-pop groups, including BTS, TXT, ENHYPEN, SEVENTEEN, LE SSERAFIM, and more.
Binary Korea is a subsidiary of HYBE that has aimed to provide novel services through the merger of entertainment and blockchain, boosting fan experience. It focused on exploring the utilization of blockchain in the entertainment sector.
According to News1, Hive holds an 85.19% stake in the subsidiary, while the blockchain VC Hashed and Binary CEO Kim Seong-min hold the rest.
Additionally, Binary Korea launched a fandom platform THEUS with Korean digital entertainment company Sandbox Network in 2022. It failed to produce results.
However, per the latest changes on Namuwiki, Binary Korea launched in July 2022 and closed on 27 March 2025.
With all this, per the local media, it seems that one of the largest K-pop companies has failed in its tech expansion and is now moving away from it.
NFT Expansion Fails
As the non-fungible token (NFT) sector flourished in 2021, HYBE began the move into this space, exchanging shares with crypto exchange Upbit operator Dunamu. The two established a joint venture Levvels in the United States. However, the enterprise suffered losses.
While it continues operating, News1 quoted “an industry insider familiar with the matter” saying that “the NFT platform ‘Momentica’ that was launched by Levvels with Hive IP is in fact in a state of no performance.” They argued that “it will be difficult to continue the same service unless the service is completely changed.”
Notably, millions of fans of HYBE’s groups heavily criticized the company’s NFT moves. On the one hand, they argued that HYBE needs to focus on its artists more. On the other hand, they criticized the environmental impact.
Meanwhile, in September 2024, HYBE announced that Binary Korea partnered with Coinbase, the world’s most reputable cryptocurrency company, to work together on developing Binary’s Onchain Engagement Protocol, an innovative creator enablement platform that harnesses the power of AI and blockchain technology.
Originally set to launch in 2025, the platform would utilize the Coinbase Developer Platform and Base blockchain to “connect creators with resources needed to help facilitate payments between fans and creators.”
According to News1, “Hive’s position is that nothing has been completely decided yet. They also implied that they are not completely giving up on the blockchain business.”
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