momenticsa non-fungible token (NFT) platform created by Dunamuthe operator of Korea’s #1 virtual asset exchange, and HYBE, shows poor performance. This is a disappointing and painful result given that it is an ambitious work Song Chi Hyungthe chairman of Dunamu, had planned.
Momentica is a platform that trades virtual assets that can limit users’ transactions at any time at the discretion of Levels (a joint venture between Dunamu and HYBE) and blocks screen recording at source. Analysts say it is not well received by crypto investors and idol fans alike because it adheres to centrally controlled operational policies.
According to the industry, a total of 1231 video recordings (referring to digital maps made NFTs in Momentica) based on 30 different drafts of LE SSERAFIM’s 2nd mini album ‘ANTIFRAGILE’ were released on January 23, but only 40 to 60 video recordings were released. sold.
For $12 you can buy a “special video pack” containing three video recordings, but only 157 people bought it. Total sales to date are estimated at around KRW 8 million (~ USD 6,497). Since LE SSERAFIM’s official YouTube subscribers are around 2.22 million, the fan demand for these video NFTs is only a small fraction.
This appears to be because Levels can exercise firm control over user transactions. Under Momentica’s terms, “Levels may decide in its sole discretion whether or not you may trade some or all takes with other users by granting or restricting access to certain related features on the Platform.”
The terms also explain that “Levels reserves the right, without notice, to limit the number of Takes available, discontinue use of Takes, or make Takes unavailable to users.”
On this, a Levels official stated: “To conduct transactions between users within Levels, you must go through the KYC (customer identification) process. If it is confirmed during the identity verification process that there are no issues related to AML (Anti-Money Laundering), users can trade, but members who do not meet the legal standards cannot trade.”
However, it is pointed out that it is an excessive intervention to control the user base of the platform for identity authentication without specifying the purpose of restriction of use for ‘problem users’. There has also been criticism that it is an expected outcome that crypto investors will not participate in a platform that, in the opinion of the operator, may infringe their proprietary rights.
Moreover, one of the most important variables for Momentica is BTS, the biggest influence among HYBE artists. BTS has a substantial impact on their agency, and it is said that leader RM had given a PPT presentation (PowerPoint) to HYBE executives to change the company’s policy on NFTs and received favorable response.
BTS’ fandom, ARMY, has also strongly opposed HYBE’s NFT activities. They stated that spending NFTs emits carbon and can pollute the environment. This is why Levels separately emphasized that it uses a low carbon emission blockchain that actually consumes little power.
There is also a significant number of fans who have joined the fandom after seeing the photos, videos, and content created by other fans. This also reveals the closed nature of Momentica, as Momentica blocks the capture feature in the entire app. A Levels official explained: “This is to protect the rights of the app users and the artists’ IP.”
For NFTs, copying or recording is not important, but the value is generated by ‘proving that the content is original’. HYBE and Dunamu thus consider NFTs as goods/assets. However, there is a review that casts doubt on what kind of technical contribution Dunamu, a “blockchain specialist,” has made to Momentica and HYBE.
Dunamu CEO Lee Seok Woo said in September 2022“This is the business that Levels is focusing on the most this year.” In addition, Chairman Song Chi Hyung was exempt from the 2022 parliamentary scrutiny due to a business trip to the United States for the Levels activities.