Binance is inking a partnership with SM Entertainment for its NFT endeavors.
Binance has signed a Memorandum of Understanding to build a partnership with SM Brand Marketing, a subsidiary of SM Entertainment. As part of the partnership, the two companies will worth together to establish what it calls a global play-to-create (P2C) ecosystem. The partnership begins with cooperation in the NFT sector and the creation of a joint eco-fund.
“Conceptualized by Soo-Man Lee, the renowned music executive of SM, P2C allows users to reproduce contents using IP,” the announcement reads. “By using the tools and IP provided within the e-commerce and metaverse platforms, users can re-create content and products in the forms of games, music, dance, and goods.”
“Within the P2C ecosystem, these contents and products can be converted into NFTs, allowing users to earn profits while also gaining recognition for their originality. The P2C ecosystem is a step forward for the existing play-to-earn model.”
The play-to-create system described here has been in use in the gaming industry for a while. For example, creators who also play Valve’s games can design skins and costumes for characters that the community can vote into the games. If the designs are added to the game, the creator receives a portion of the proceeds when the community as a whole buys the item.
Binance and SM Entertainment’s marketing arm will collaborate to create a similar ecosystem for K-pop fans.
Both companies will be working jointly on the blockchain mainnet, NFT, and eco-fund to establish the P2C ecosystem as outlined. Binance will provide the technology infrastructure for the overall ecosystem. While SMBM will provide the IPs managed by SM, including EXO, Red Velvet, NCT, aespa, and many more.
“SM is creating various metaverse-orientated content IPs through SMCU (SM Culture Universe), which includes Metaversal Origin Stories. By combining together SM’s production capabilities, SMBM’s e-commerce platform capabilities, and Binance’s technology infrastructure, we expect this comprehensive partnership will bring great innovation in the establishment of the P2C ecosystem and expansion of businesses in the blockchain industry,” says Sung-su Lee, CEO of SMBM.
“It is also an opportunity for fans to build a new participatory creation culture through recreation and to gain economic benefits by being on the blockchain.”