KOK Chain

KOK Chain, operated by the KOK Foundation, was presented as a decentralized digital content platform designed to transform the media industry. The project launched around 2019 with the stated mission of correcting inefficiencies and distorted systems within the traditional digital media landscape by leveraging blockchain technology. It was acquired by Medium Inc., a blockchain technology firm, in a deal intended to expand the application of Medium's high-performance blockchain core technology. The platform, known as KOK PLAY, intended to offer a fair and transparent ecosystem where content creators could receive equitable compensation and users could access a diverse range of content, including games, movies, and webtoons.

The business model centered on the KOK token, an ERC-20 token built on the Ethereum blockchain. Users were encouraged to invest in KOK tokens and stake them on the KOK PLAY application with the promise of monthly returns, which in some cases ranged from 4% to 20%. The platform also incorporated a multi-level marketing (MLM) structure, where users could earn commissions by recruiting new investors. Revenue was purportedly generated from game sales, fees from a shopping portal, and transaction fees involving the KOK token. The KOK token was meant to be used for payments, ownership, distribution, and compensation for content within the ecosystem.

Despite its initial presentation, KOK Chain has faced severe allegations of being a fraudulent enterprise. Since 2023, South Korean prosecutors have been investigating the platform over accusations of it operating as a Ponzi scheme, attracting nearly two million investors worldwide and causing an estimated $3 billion in losses. Lawmakers in South Korea have called for a special investigation into the matter, with victims alleging they were unable to withdraw their funds and were penalized for attempting to do so. Legal actions, including class-action lawsuits, have been initiated against the company. Key figures associated with the project, such as a suspect identified as Mr. Han, have faced legal proceedings and extradition requests. The token's value, which peaked at nearly $7, has since collapsed to a fraction of a cent.

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