[Asia Economy Reporter Hyungsoo Park] Galaxia Moneytree is showing strong performance. Amid the heated interest in non-fungible tokens (NFTs), it appears that the recent news of Galaxia Moneytree pursuing a new blockchain-based business has influenced its stock price.
As of 2:35 PM on the 22nd, Galaxia Moneytree is trading at 6,780 KRW, up 7.11% from the previous trading day.
Sotheby's, a famous auction house headquartered in New York, is responding to the explosive interest in NFTs over the past few weeks. Sotheby's plans to hold an NFT sale next month. Sotheby's move draws attention as it comes just days after the UK auction house Christie's sold a digital artwork NFT by digital artist Beeple for nearly 70 million USD. Beeple's work holds the record for the highest price in NFT history.
Hanyang Securities analyzed that attention is needed for Galaxia Moneytree's new business integrating blockchain with artworks. They did not provide an investment opinion or target price.
Galaxia Moneytree's business segments are divided into electronic payments, O2O, and others. As of 2020, the revenue proportions are 77%, 22%, and 1%, respectively. The largest segment, electronic payments, is a PG business divided into mobile payments (53%) and credit card payments (24%).
Researcher Yongho Kim of Hanyang Securities stated, "Galaxia Moneytree appears to be actively pursuing new blockchain-based businesses recently," adding, "At the regular shareholders' meeting at the end of this month, they plan to add blockchain-related business purposes and appoint a blockchain expert as an outside director." He further noted, "They already issued the cryptocurrency XTL at the end of last year and successfully listed it on the cryptocurrency exchange 'Gopax.'"
Researcher Kim emphasized the importance of the new business purpose item to be added at this shareholders' meeting: 'Storage, consignment sales, self-sales, and brokerage of auctionable items such as artworks, jewelry, and other valuables.'
He said, "A promising new business is selling ownership of artworks as digital assets by dividing ownership based on blockchain technology," adding, "By applying blockchain technology to artworks, it becomes possible to divide and liquidate ownership of artworks and record transaction histories, thereby providing transparency and reliability to the previously opaque art market."
The lowered entry barriers for art investment through ownership division are expected to increase the number of market participants and liquidity, ultimately enabling artworks to function as popular alternative investment assets. He continued, "While confirmation of the new business direction is necessary, NFT-based art transactions have recently attracted attention," and explained, "As interest in the integration of blockchain and artworks expands, it is necessary to continuously monitor Galaxia Moneytree's new business direction."
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