Cheil Worldwide Inc. and Daehong Communications Inc., two of South Korea’s largest advertising agencies, are putting more money into non-fungible token (NFT) ventures to develop new growth engines.
Cheil Worldwide, a subsidiary of South Korea’s largest cryptocurrency exchange Dunamu, has signed a memorandum of understanding with US-based NFT marketplace CYPHRLY to promote its brand NFT business.
CYPHRLY is a subsidiary of Dunamu, the biggest cryptocurrency exchange in South Korea.
According to the terms of the agreement, Cheil Worldwide will be in charge of planning and designing brand NFTs for advertisers, while CYPHRLY will be in charge of developing and running the NFTs through its platform.
Based on these products, the two parties will also show off new types of NFT products and promote a wide range of marketing and intellectual property businesses.
Lotte’s ad partner, Daehong Communications Inc., also announced the release of a mobile gift certificate based on NFT.
Daehong plans to use NFT for a wide range of projects, such as ticketing, membership programs, subscription coupons, and authenticating luxury goods.
Daehong put in about 5 billion won ($3.74 million) to buy a 5.7% stake in the local blockchain company Blocko.