The major South Korean record label HYBE has decided to close its blockchain project, Binary Korea, less than three years after its launch due to poor financial performance. The Seoul-based subsidiary will merge with HYBE, which will now concentrate on its entertainment business, primarily artist management. According to AlphaBiz, HYBE’s aim with this merger is to boost management efficiency. Reports indicate that Binary Korea was unprofitable, generating only KRW 468,441 ($318) in 2023 while suffering a net loss of KRW 4.28 billion ($2.9 million).
HYBE, which represents major K-pop groups like BTS, TXT, ENHYPEN, SEVENTEEN, and LE SSERAFIM, initially launched Binary Korea to explore the use of blockchain in entertainment and enhance the fan experience. Binary Korea, established in July 2022 and closed on March 27, 2025, attempted to merge entertainment with blockchain technology but failed to deliver results. Despite some initial collaborations, such as launching the fandom platform THEUS with Sandbox Network, Binary Korea did not meet expectations.
HYBE entered the NFT sector during its peak in 2021, forming a joint venture called Levvels with Dunamu, the operator of Upbit. However, the venture also faced financial challenges. Industry insiders revealed that the NFT platform ‘Momentica’, created with HYBE IP, is not performing well and may need a complete overhaul to continue operations.
Amidst criticism from fans over environmental concerns and a perceived shift away from artist focus, HYBE announced a partnership in September 2024 between Binary Korea and Coinbase to develop an Onchain Engagement Protocol. This initiative intended to utilize AI and blockchain technology to connect creators with fans. Although HYBE has not fully decided on the future of its blockchain endeavors, it seems to be prioritizing its core business of artist management.
Twitter Post:
HYBE is closing Binary Korea, their blockchain subsidiary, after significant losses. The focus is returning to artist management. #HYBE #Blockchain #Kpop
