South Korean Telecoms Giant KT Is Reportedly Developing a Local Cryptocurrency

Francisco Memoria

The KT Corporation, a South Korean telecommunications giant, has reportedly been selected to develop a cryptocurrency that’s set to be used in the city of Gimpo in the country, in a test that could see it expand to other local governments.

According to ZDNet Korea, the cryptocurrency will be introduced in April of this year, after a pilot project is run next month. The cryptocurrency, called “K token,” is set to see 11 billion won ($9.7 million) worth of it get issued, and will be usable with local merchants.

The news outlet points out that to pay using the K token, uses will have to scan QR codes, and that merchants who accept payments in the cryptocurrency will be able to request a conversion to fiat that’ll be transferred to their bank accounts, without extra fees.

The head of the blockchain center and KT’s senior vice president Yeong-il Seo was quoted as saying (roughly translated):

Based on the differentiated technology and business competitiveness of the KT blockchain local currency platform, we will successfully carry out [a] local currency business in Gimpo City. The introduction of local currency will contribute to the revitalization of the regional economy.

The company is reportedly planning to expand its cryptocurrency project to other local governments that agree to it, based on its performance in Gimpo. Notably, the KT Corporation has last year ventured into the blockchain sector, as it launched a distributed ledger network that was to be applied to various areas, including ID verification, energy trading, and data roaming.

The move could be seen as a step forward for South Korea, a country that has banned initial coin offerings (ICOs), and that has revealed it’s planning on taxing the fundraising practice if it becomes legal again, as well as cryptocurrencies.

In the country, cryptocurrency exchanges are believed to be vulnerable to hacks, according to a report. This, as only some of the nation’s cryptoasset trading platforms cleared the government’s security checks.

Binance ‘Unknowingly’ Earns $775K via Staking, Set to Launch Huge XLM Giveaway

On Thursday (July 18), Binance, the world's largest cryptoasset exchange (by adjusted trading volume), made a rather interesting announcement: it had "unknowingly" earned 9.5 million Stellar Lumen (XLM) tokens through staking rewards, and it is going to give all of it away to all Binance users who maintain XLM balances between July 20 and September 1.

Binance explained via a blog post that in August 2018 the Binance team followed the advice of the Stellar Development Foundation "to change some parameters on both cold and hot wallets," which resulted in the exchange "unknowingly" earning staking rewards for its XLM holdings since 31 August 2018.

Then, this week, while the Binance team was considering the idea of adding support for XLM staking, it found out that Binance had earned around 9.5 million XLM tokens (each of which was worth approximately $0.08157 at the time). Binance notes that all "weekly staking rewards between then and now are documented on the blockchain." 

So, the team made two decisions:

  • add support for XLM staking to Binance.com; and
  • give away the aforementioned staking rewards to the Binance community (i.e. Binance users).

This is not the first time that Binance has added staking support to Binance.com. The exchange already "distributes NeoGas for NEO holders, Ontology Gas for Ontology holders, VTHO for VeChain holders, and BitTorrent tokens for TRON tokens."

Here is how this 9.5 million XLM giveaway is going to happen.

From July 20, Binance will support XLM staking. Between this date and September 1, Binance will take "daily snapshots" of XLM balances in Binance user accounts.

Then, on September 1, Binance will "tally average user XLM balances based on these snapshots," and process the distribution of staking rewards to these user accounts (that maintained XLM balances during the staking period). Furthermore, the roughly 9.5 million XLM tokens that Binance has unknowingly earned to date will be distributed as a bonus payment to all Binance users who jave maintained non-zero XLM balances since July 20. 

Binance says in its blog post that it estimates this "one-time distribution of 9,500,000 XLM shared proportionately among Binance users" to be worth "10 to 12 months of typical monthly rewards."

According to a support article published on July 18, here are the details of Binance's "Monthly XLM Staking Airdrop Program":

  • Binance will start these daily XLM balance snapshots at 00:00 (UTC) on 20 July 2019.
  • This is how Binance will calculate the XLM staking distribution:

XLM generated by each user = Total XLM staking rewards received by Binance * User XLM holdings ratio. User XLM holdings ratio = User XLM holdings / Total XLM staked by Binance.

  •  In order to qualify for XLM staking rewards, Binance users must have a balance of at least 10 XLM.
  • This initial distribution of XLM staking rewards will be calculated until 1 September 2019, "with the total amount distributed equal to the staking rewards accrued on holdings during the 43 day period."
  • These XLM staking rewards are calculated on a daily basis and are distributed monthly. 
  • XLM distrubutions will be "completed before the 5th of each month."

In other Binance news, another support article explained that Binance's Margin Trading platform has added support for two margin assets (EOS and LINK), three borrowable assets (BNB, EOS, and LINK), and three margin pairs (EOS/USDT, EOS/BTC, LINK/USDT, LINKBTC).

Binance's announcement about its 9.5 million XLM giveaway may have helped the XLM price. According to CryptoCompare, XLM is currently trading at $0.08914, up 7.96% in the past 24-hour period:

XLM-USD 24-Hour Chart on 18 July 2019.png

Featured Image Courtesy of Binance