[Click eStock] "Vidente, Rapid Transition to Virtual Asset Operator"

Preparing New Businesses Related to NFT and Metaverse
Hi Investment & Securities "Stock Price Has Not Yet Reflected Fundamentals and Growth Potential"

[Asia Economy Reporter Gong Byung-sun] Vident is rapidly transitioning from a broadcasting equipment company to a virtual asset business operator. The rising market share of Bithumb, a domestic cryptocurrency exchange, along with new businesses such as non-fungible tokens (NFTs) and the metaverse, are expected to serve as growth momentum in the future.

According to Hi Investment & Securities on the 8th, Vident is transforming from a telecommunications equipment company into a virtual asset business operator. Due to government regulations, the cryptocurrency exchange market has been consolidated into four major exchanges (Upbit, Bithumb, Coinone, and Korbit), with Upbit and Bithumb effectively competing. Since new entrants are limited, if the market share of its affiliate Bithumb rises, Vident’s value is also expected to increase.

Additionally, Vident is venturing into new businesses. The cryptocurrency-related businesses Vident is pursuing are still considered to have significant market growth potential. Vident is expected to launch Bithumb Live within this month. Bithumb Live is a company funded by Bucket Studio and Bithumb Korea, and it is anticipated to conduct short-form commerce business targeting customers using Bithumb.

Vident is also preparing for the NFT business. Recently, competitor Upbit conducted a beta opening of its NFT platform and earned approximately 100 million KRW in commission revenue from just 40 NFT items. Kim Hyun-ki, a researcher at Hi Investment & Securities, explained, “NFTs will gradually penetrate everyday life not only through high-priced artworks but also through NFT issuance via entertainment companies’ fandom ecosystems, game items, luxury authentication certificates, and more. Furthermore, NFTs inevitably combine with the metaverse.”

Hi Investment & Securities did not provide an investment opinion or target price for Vident. However, researcher Kim said, “Recently, Vident’s stock price has risen rapidly, reflecting the company’s value. I believe the stock price still does not fully reflect both the fundamentals and scalability.”