South Korean messaging tycoon Kakao’s “klay” token – the issued cryptocurrency of its recently introduced Klaytn blockchain – is soon to make its first official exchange listing on Upbit’s platform.
Ground X, the company set up by Kakao to build the Klaytn network, declared the news in a Medium blog post on September 5, stating klay will be listed on Upbit’s Singapore and Indonesia platforms by the end of this month.
Upbit Singapore announced on September 6 that klay would be listed after value disclosure by means of a Dutch auction – in which the cost is decreased until purchasers are found – on September 18.
The auction will keep running for 12 hours, or until an undisclosed hard cap is hit. After this, successful bidders will get their klays on September 19. A klay/bitcoin exchanging pair will be introduced at a future date.
The exchange further said that Upbit and Klaytn wouldn’t benefit from the auction and Upbit will “redistribute all proceeds” to clients later on.
It is not clear yet how Kakao intends to redistribute the proceeds and how much klay token it will make accessible for the auction. The exchange said a sum of 10 billion klay would be appropriated through to 2021 in monthly tranches extending from 29 million to 278 million tokens.
The news that Upbit is the first platform to list Klay is probably not surprising given the nearby relationship of the two companies. Headquartered in South Korea, Upbit is a cryptocurrency exchange worked by Dunamu, a company supported by Kakao.
In its statement, Upbit stated that in a private sale in December last year, Klay was valued at $0.03 per unit. Afterward, in April 2019, a private sale witnessed the digital currency reach $0.08 each. Ground X purportedly secured $90 million in a private coin offering this spring.
It might appear surprising that klay is launching first in Singapore and Indonesia, and not in the home country of both Upbit and Kakao. In any case, the listing declaration follows press reports proposing that klay would experience difficulty listing in South Korea, where initial coin offerings are prohibited.