April 9, 2021

GMO Internet Group enters the NFT business to
support the online content distribution revolution,
releasing its new marketplace Adam byGMO

GMO Internet, Inc.

Tokyo, Japan – April 9, 2021 – GMO Internet Group (https://www.gmo.jp/en/) has decided to enter the business utilizing a token that is not interchangeable, which is known as a non-fungible token (NFT). GMO Internet Group will develop an NFT platform, realize an authentic, safe, and secure digital content payment and distribution, and support the online content distribution revolution through Adam byGMO, a new marketplace for sellers and buyers.

[NFT]
NFT is intended to record the ID (which has the unique right that is not interchangeable), the holder information, the issued amount, and the number of times issued in a blockchain, and can prove ownership of things including digital content. The seller and the holder can generate revenue from the secondary and subsequent transactions by leveraging a program keeping track of a relocation.

Background

■ Environment surrounding the digital content
The physical market has shrunk regardless of the global market or Japanese market but the digital market is continuing to expand, and the digital content market in the fields of music, publishing, video, and gaming is on the rise*. However, it is important to tackle the issues of copyright and other rights being easily violated (for content holder), for digital content has become mainstream, making it easier to generate a large number of copies of an almost equal quality to the original contents, which leads to the secondary and tertiary transactions on the Internet.

* “Overview of global and Japanese content markets” by Media and Content Industry Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry
URL: https://www.meti.go.jp/policy/mono_info_service/contents/downloadfiles/202002_contentsmarket.pdf

■ NFT changes the “proof” and the “payment” of digital content
A token that is not interchangeable, which is known as NFT, allows a given copyright holder to generate revenue from the secondary and tertiary transactions every time the payment of the contents of the copyright holder is executed, by leveraging a blockchain technology keeping track of relocation of digital content rights. Rights being violated (including illegal copies, illegal downloads, etc. on the Internet) has an opportunity cost but NFT can bring justifiable revenue to content holders.
NFT is intended to record the ID (which has the unique right that is not interchangeable), the holder information, the issued amount, and the number of times issued in a blockchain, and the copyright holder and the owner can pursue new economic opportunity through the exchange of valuable things, the purchase of which is limited.
In addition to the fact that the NFT has become available for the payment of things, such as artwork, music, games, animation, characters, videos, etc., we expect that it will become available for the distribution of information including membership, ticket, date, seat, etc. as well.
NFT is attracting attention as it supports content holder’s business by ensuring that the digital content payment and distribution meet standards of authenticity, safety, and security, proving that the content’s copyright is real, and preventing copies or fraud.

Purpose

GMO Internet Group positions the cryptoassests business as its strategic business sector. GMO Coin, which is a consolidated subsidiary of GMO Financial Holdings, is registered as cryptoassets exchange business and type I financial instruments business, and has launched the cryptoassets exchange business in May 2017. GMO Internet has launched the cryptoassets mining business in December 2017. For the new services in the cryptoassets-related business domain, which consists of “exchange,” “mining” and “payment,” the US subsidiary GMO-Z.com Trust Company, Inc. has launched the world’s first Japanese yen-pegged stablecoin GYEN in March 2021.
In consideration of the fact that the digital content market is expanding, GMO Internet Group will make full use of know-how accumulated through these cryptoassets-related operations and services and the development of our own blockchain technology to provide NFT platform and wallets.

Releasing new NFT marketplace Adam byGMO

NFT ensures that the digital content payment and distribution meet standards of authenticity, safety, and security. GMO Internet Group will support the online content distribution revolution through Adam byGMO, a new marketplace for artwork, music, and valuable content by famous artists.
Adam byGMO refers to the first man created by the creator of humanity, or "earth" in Hebrew, so we will create new value as a place for the "creation" and aim to be the marketplace for attractive contents similar to "forbidden fruit" that is hard to obtain.

■ Adam byGMO
URL: https://adam.jp (Launch date will be announced as soon as it is determined.)