The blockchain establishment, Ground X, is an associate partner of the South Korean Kakao, the eminent administrator for a message application. Recently, the blockchain enterprise Ground X enterprise has been under scrutiny for tax avoidance. The acquisition reports against Ground X states that revenue profits generated through the firm have been withheld during the disclosures of their digital currencies.
The two cryptocurrencies of Ground X, ‘Coinone’ and ‘KLAY,’ have not been registered. The crypto tokens revenue filings have not been declared publicly both in South Korea and on international grounds. Moreover, the issue at hand has accelerated and raises questionable practices as the merit of KLAY’s price valuation has been depreciated. This crypto token was devalued by staking the reward profits to its company representatives at the time of publicly withholding their revenue filings statement.
In another illicit affair, the blockchain network firm ‘Encore’ is being inspected by the official representatives of South Korea as it has related acquisitions to that of Ground X. The Encore crypto platform has been a backbone in conceptualizing and executing the blockchain business venture enterprise recognized as Terra. Both the blockchain networks, Encore and Kakao, are not registered officially in South Korea.
Kakao’s blockchain subdivision operating partner, Ground X, declared an accumulation of 27.7 billion profits credited, i.e., $24.4 million value of KLAY crypto tokens from the past year. According to Ground X’s account statement, the revenue generated was to expand their enterprise and include innovative offerings for their platforms operating systems.
As of June 21, 2021, the KLAY cryptocurrency exchange has witnessed a revenue loss of 4.23 percent, whereas the Coinone crypto token has garnered profits of 1,088 percent. At the same time, Kaka’s shares have dropped by 0.32 percent and are trading 154,500 profits in marketplaces of Seoul as per data rendered on June 21, 2021.
The crypto-token by Ground X, known as KLAY, is employed in the blockchain network of KLAYTN that is regulated by a Singapore honed enterprise ‘KLAYTN Pte Ltd.’ Since the outset of June 2021, South Korea’s National Tax official representatives have been transpiring to convoy a comprehensive investigation on the two blockchain enterprises Ground X and Encore. Kakao’s Ground X is being tight-lipped and not imploring the subject nor pleading guilty for the acquisitions put forth by the tax administrators.