βAbout DMM Group
Last updated
Last updated
We, DMM Crypto, are a subsidiary of DMM.com, LLC, one of the largest general entertainment companies in Japan.
As of January 2023, DMM.com, the parent company, has 60 businesses in 20 domains, including entertainment, games, finance, sports, infrastructure, education, and amusement, and has built a creator ecosystem involving numerous celebrities and creators.
We will leverage these business assets, as well as DMM's existing membership base of 41 million members and brand power, to expand the web3 user base by seamlessly sending customers to web3 services and lead the mass adoption of web3 in Japan.
Furthermore, while leveraging our strengths in Japan, we will also actively build strategic partnerships with overseas companies and investors to expand our global operations, gain more users, and establish and expand a stronger and more stable ecosystem.
As the brand commercial "DMM doing everything" suggests, DMM is "doing everything" to the extent that it has developed as many as 60 businesses because this is our survival strategy as a company.
Only a handful of businesses that are launched are successful. To continue to survive as a company, our business must change with society and the times. By planting seeds for the future, keeping the buds alive, and repeatedly challenging ourselves to achieve the great fruit of "success," some of the seeds of diverse possibilities have borne great fruit and supported our growth.
To continue to grow, DMM believes that as a survival strategy, it must adapt to changes in society and the times through web3.
To date, the DMM Group has continued to grow while making major changes to its businesses in response to the emergence of technologies that have drastically changed society, such as the advent of the Internet and the spread of mobile devices and smartphones. This is not simply a matter of creating new businesses that incorporate trending technologies, but rather of grasping the essence of the changes that these technologies will bring to society, at times investing early on in content that will be in high demand in the new society, and at other times targeting top niche positions in markets where competition is expected to decrease. We have been implementing management strategies from a comprehensive perspective.
The aspect of web3 technology that will have the greatest intrinsic impact on society is the "democratization of currencyβ. In the modern era, the issuance of new money has been monopolized by the state and central banks, and private companies and individuals have lived with money as a pre-given commodity. Of course, private banks could create credit and issue their own currencies such as local currencies and corporate points, but most of them ultimately relied on fiat currency or other assets as collateral for their credit. Therefore, few private organizations have the know-how to issue their own currencies that do not depend on external credit, such as Bitcoin, and to operate them stably.
However, the advent of web3 technology has undeniably democratized the issuance of money, and as of November 2023, over crypto assets ΒΉ are traded on exchanges and other venues. Relatively speaking, the importance of each individual currency is declining, and in the future, businesses that rely solely on existing legal tender and payment instruments will be at very high risk.
To overcome this major business turning point, DMM will take on the challenge of issuing its own crypto assets and establishing its proprietary ecosystem.
In general, it is not easy for existing companies to succeed in the web3 domain. Reasons include the relatively smaller market size of web3 compared to existing business markets, which lowers its priority, and the numerous regulatory and technical hurdles that must be overcome to onboard existing customers to web3 services.
We are exploring ideas to seamlessly connect the DMM Group's existing economy and user base with the web3 domain.
The first idea is to provide benefits to existing members for holding our native tokens. For example, converting DMM points held by DMM members into token-linked assets to earn returns, or granting various incentives from the platform and applications for holding tokens or recording activities on-chain.
The second idea is to offer various token acquisition routes and features that lower the barriers to obtaining tokens. For example, providing opportunities to earn tokens for free by playing web3 games, or allowing temporary borrowing of tokens to enjoy the benefits of holding tokens.
For users unfamiliar with cryptocurrencies, the price volatility risk of cryptocurrencies can be daunting. With a token borrowing scheme, users can return the borrowed tokens once the borrowing period ends, regardless of the token's fiat currency value, eliminating the risk of loss for the borrower. This scheme shifts the price volatility risk from token holders to lenders, creating an environment conducive to token holding through lending schemes.
Additionally, this lending scheme allows web3 investors to earn lending fees by treating DMM Group's existing 41 million members as potential token borrowers, bearing the price volatility risk of tokens. Of course, the price volatility risk borne by the lenders can be hedged through connections with various DeFi services. This creates benefits for web3 investor users to hold our issued tokens.
