Klay, Binance and the ban: All this happened within a week

Klaytn, the public blockchain project of the South Korean Internet giant Kakao, on June 24, announced the official listing of its KLAY token on Binance -- world's largest crypto exchange by volume.

On that day, the cryptocurrency seemed to have reversed its fortunes. On March 29 this year, when all cryptocurrencies were booming, Klaytn had peaked to the price of US$4.38. However, things went south from there. It reached a low of US$0.73 last week – a collapse of astounding 83.33% from its life high.

But, on last Thursday, it seemed that the fortunes had turned. Klaytn got listed on Binance, which would introduce it to wider markets across the globe. The reaction was very positive – the digital currency rose 75% from its June lows to touch US$1.28. Many analysts saw it as a positive development but were uncertain if this rally could be sustained in the long run.

A week later, despite being traded in wider markets on Binance, it is still stagnant and range-bound. Some believe that a large reason behind this stagnation is the fact that Binance, over the past week, has been banned in two major crypto markets – the UK and Canada. Also, a day after Kalyton’s listing on it, the Japanese Financial Services Agency hit Binance with its second warning in three years saying that the company isn’t registered to operate in Japan. So, with this worldwide crackdown, the “wider market” edge that Klay would have got has been nullified.

For the uninitiated, Klaytn is developed by Kakao's blockchain unit, Ground X, of South Korea, and is a public blockchain platform. Kakao is the same company that had earlier developed popular messaging app KakaoTalk.

The cryptocurrency claims to be “committed to offering high performance, fast response times, and flexible scalability solutions that cater to a wide spectrum of audiences, from micro start-ups to large-scale enterprises.”

Playing it smart, the cryptocurrency managed to launch itself using subsidiary firms in foreign countries.

Last year, in June, Klaytn became available on the Klip wallet that was built into the KakaoTalk app. The aim of the Klip wallet is to help companies reward their users with fungible or non-fungible tokens (NFTs) on interacting with the sponsored content or while completing the microtransactions.