Clay, the currency of Clayton

I would like to inform you that the blockchain platform “Clayton,” which was created by Kakao and was successful, has been showing various signs of crisis recently. Learn More What is Clayton? Clayton (Klaytn) is a blockchain platform for DApp (dApp) developed by Ground X, a subsidiary of Kakao Co., Ltd. Other blockchain-related projects such as NFT and DiFi can be operated.

Clay, the currency of Clayton, has shrunk from $4.48 in just over a year to about 1/19 to the current $0.24 level.

It seems to be falling without a significant rebound.

The Crisis of the Clayton Ecosystem

The Clayton crisis isn’t just the price drop of the key currency, the Clay.

NFT (irreplaceable token) or Depi (DeFi) services, which used to be operated based on Clayton, are terminating their services or going through liquidation procedures one after another. Over the past two months, about 10 projects have gone through liquidation, including Flora Finance, Ignite, Hodlersdao, Kepler, Bad Baby, and Neverland.

Among them, there were cases where they were suspected of embezzlement or rug pool (a job that disappeared only for investment).

A case in point is the conversion of the stable coin DAI, which had been deposited by the operator of Kronosdao, a defy service, to its own coin, Kyros Cash (KASH), without any guidance. In the case of the NFT project “The Soldier,” the company’s representative has not appeared at the company since May, and the whereabouts of company funds such as cash and coins are unknown.

On the other hand, there were cases where the service itself was terminated, but there were many cases where the service continued and left the Clayton base.

Metacongs, a well-known NFT project, has already changed its mainnet, and Wemade has said it will build its own.

In addition, more and more of Clayton’s partners, the Governance Council (GC), are moving away.

Representatively, Shinhan Bank, a financial company, withdrew from Clayton’s GC. In addition, global exchange Huobi, Battleground producers Krafton, and AmorePacific are also expected to leave Clayton’s GC.

the cause of the crisis

Opinions are divided on whether it is the cause of Clayton’s crisis or the result, but Ground X, the parent company of Kakao, seems to be gradually withdrawing from Clayton.In the case of Kaikas, Clayton’s wallet service, the operator will be changed from Ground X to Espresso 247.

Ground X, a Kakao affiliate, is focusing on NFT and handing over Clayton or Kaikas operations to new overseas subsidiaries. This is interpreted as an intention to disconnect the connection immediately in the event of a problem with Clayton. Currently, Clayton’s operations have been transferred to a separate company called Crust.

The addition of these factors accelerated the overall decline when Clayton was no longer able to wear the halo of a major company called Kakao.

Clayton’s countermeasures

Krust, Clayton’s operator, says it will help the ecosystem grow by creating a fund with the goal of investing about 20 percent of the company’s clay in new projects.

He also explained that he is only reorganizing members based on actual operators regarding the withdrawal of several partners from GC.He also said he would announce five new members within July.

In addition, the Bank of Korea is conducting a simulation of the central bank’s digital currency, which will be issued in the future, and the simulation was built based on Clayton, which can be seen as a positive factor for Clayton. However, considering that the Clayton network was shut down for several hours last year, it is analyzed that there is a risk in terms of stability.

Furthermore, there are many skepticism about whether to regain the glory of the past because it has already lost trust.

It seems necessary to be careful about clay coin investment in the future.