Web3 Platform LineNext Receives $140M in Funding

LineNext, a unique segment of the renowned Japanese messaging app Line, has recently announced a successful funding round, raising an impressive $140 million. The funding was led by Crescendo Equity Partners, a private equity firm backed by tech mogul Peter Thiel, in South Korea. This significant investment will pave the way for LineNext to expand its innovative web3 platform and solidify its presence in the ever-evolving world of digital products.

The recent funding round comes after LineNext’s release of its beta service last year, which is a web-based marketplace for consumer-to-consumer transactions. This platform, called DOSI, runs on non-fungible tokens (NFTs) and has provided LineNext with valuable insight into the potential of various Web 3 services. According to Woosuk Kim, the business director of LineNext, the company has been particularly interested in exploring the potential of NFT platforms, avatar features, games, and entertainment through the DOSI beta.

With the new capital in hand, LineNext has ambitious plans for the future. In January of next year, it plans to launch its official NFT platform, as well as a suite of new web3 services. These include the highly-anticipated DOSI mobile app, which will be available to users worldwide, as well as the integration of games and more than 100 partners of LINE NFT in Japan. Additionally, LineNext will unveil a new development tool to help Web 2 brands transition into Web 3 digital products. This tool will also give users the ability to directly trade their digital products on the DOSI platform.

Speaking of the upcoming launch, Kim told TechCrunch, “For the full launch in January, we are expanding our services to offer digital products for brand memberships, and expanding content, event tickets and games.” He also mentioned that the company plans to incorporate international mobile payment options beyond Naver Pay and LINE Pay.

Kim continued, “We also plan on adding major, international mobile payment options beyond Naver Pay and LINE Pay.” This new venture will also see the release of a new social app, which will utilize AI avatars for communication purposes. Additionally, LineNext aims to launch new web3 games featuring the beloved character Brown and Friends from Line.

LineNext’s ultimate goal is to “popularize” web3 for all users. Kim explains, “We target all users who own or want to own valuable digital products, including app users, gamers, consumers, and users who enjoy entertainment.” When asked about the recent dip in the NFT market and potential resurgence in the future, Kim expressed confidence in the long-term potential of NFTs. He believes that NFTs will become the new standard for valuable digital goods, despite the initial surge of speculative products in the industry.

Over the course of its beta product period, LineNext has gained over 5.5 million users globally, with over 470,000 cumulative transactions. Founded in 2021, the company generates revenue through platform fees and is constantly exploring additional revenue models through the issuance, distribution, and trading of digital products.

One of the factors setting LineNext apart from its competitors is its impressive global infrastructure and knowledge acquired through its widespread services. Furthermore, LineNext will provide its services on its public blockchain mainnet, Finschia. This platform boasts transaction speeds 400 times faster than Ethereum and 98% lower network usage fees.

In terms of operations, LineNext Korea manages the company’s Web 3 business strategy, while LineNext U.S. oversees the NFT platform business.

In 2021, LineNext raised $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. The company is wholly owned by LY Corporation, a merger of SoftBank Group’s Z Holdings and four subsidiaries, including Line Corporation and Yahoo! Japan.