TikTok Owners Launch Blockchain and AI company with Shanghai Dongfang Newspaper
As reported on Dec. 14, Bloomberg broke the news confirming that ByteDance and Shanghai Dongfang Newspaper Company have started a joint venture that has already secured $1.4 million in capital.
The major video-sharing social network service TikTok owned by ByteDance has begun to develop blockchain, AI and other business models to further break into emerging markets. TikTok has seen a huge rise in popularity with over 500 million monthly active users and is one of the most downloaded applications in the App Store in the U.S. - currently ranked third while making the top 10 in China’s rankings.
TikTok has continued to grow since acquiring Musical.ly, a large lip-sync video company that shows users singing to backtracks In 2017. This latest investment from ByteDance is a very clear indication that they see much more potential in the market.
The newly formed Chinese backed company has been registered under Pengpai Audiovisual Technology Co. The business is split into two, with 49% owned by ByteDance, and 51% owned by Shanghai Dongfang Newspaper company.
They will aim to provide a list of new services using Blockchain and AI for public services and Internet data, AI applications and development. Developing in blockchain opens up the possibility to further offer increased security for digital media and verification purposes for users, with social media collecting large amounts of data, big data blockchain-based securities could be the major focuses and reasons why the partnership has emerged.
It is not entirely clear what the next steps will be, as no further information has currently been released from either party. But yet again, this is another step for Chinese backed companies maturing into blockchain markets to jump further ahead of the competition. With such a major app globally paving the way, it asks the question if we will see more investment in Blockchain from others. This is an ideal opportunity to see how the markets will advance, with bigger applications and companies helping spread more awareness.
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