LineNext, a web3 unit of the Japanese messaging app Line, has successfully raised $140 million in funding to support the expansion of its web3 platform. The funding was led by Crescendo Equity Partners, a Peter Thiel-backed private equity firm in South Korea.
Key Takeaway
LineNext secures
40 million in funding to expand its web3 platform, including the launch of the official NFT platform DOSI and web3 services in January next year.
Expanding Web3 Platform
LineNext recently released a browser-only beta service, a consumer-to-consumer (C2C) marketplace on its non-fungible token (NFT) platform DOSI. The company is focused on exploring various Web 3 services, including NFT platforms, avatar features, games, and entertainment.
Plans for the Future
The new capital will be utilized to launch the official NFT platform DOSI and web3 services in January next year. This includes the launch of DOSI’s mobile app for global users and the integration of games and more than 100 partners of LINE NFT in Japan into the DOSI platform. LineNext also aims to offer a new development tool to assist Web 2 brands in transitioning into Web 3 digital products and providing users with ownership to trade their products directly on DOSI.
Furthermore, LineNext plans to introduce a new social app that allows users to communicate via AI avatars and launch new Web3 games utilizing Line’s character Brown and Friends. The company aims to make web3 more accessible to a wider audience, targeting users who own or are interested in valuable digital products, including app users, gamers, consumers, and entertainment enthusiasts.
Market Outlook
LineNext believes that NFTs will become a new standard for valuable digital goods, despite the market’s downturn and possible resurgence after the NFT boom in 2021 and 2022. The company is focused on building and expanding the NFT market, aiming to move beyond speculative products in the industry.
Global Reach and Infrastructure
LineNext sets itself apart from competitors through its global infrastructure and know-how based on its global services. The company will provide its services on its public blockchain mainnet, Finschia, which offers significantly faster transaction speeds and lower network usage fees compared to Ethereum.
Strategic Investments and Ownership
LineNext, founded in 2021, has already garnered 5.5 million users globally and facilitated more than 470,000 cumulative transactions during its beta product period. The company generates revenue through platform fees from users and plans to create additional revenue models in the process of issuing, distributing, and trading digital products.
LineNext is 100% owned by LY Corporation, a merger of SoftBank Group’s Z Holdings and four subsidiaries, including Line Corporation and Yahoo! Japan.
Last year, LineNext secured $10 million in strategic investment from ten companies, including SoftBank Corporation, Naver, Naver Webtoon, Naver Z, Line Games, CJ ENM, YG Plus, Hashed, Shinsegae, and K Auction. LineNext Korea oversees the Web 3 business strategy, while Line Next U.S. operates the NFT platform business.
Image Credits: LineNext
