South Korean healthcare companies are launching an initial coin offering (ICO) one after another. Healthcare is the most innovative sector through blockchain technology.
An ICO is not forbidden by law in South Korea but the government imposed a total ban on an ICO after cryptocurrency speculation had been irrationally overheated in the country in September last year. Therefore, domestic companies are leaving South Korea and setting up a subsidiary overseas, like Singapore and Gibraltar, to run an ICO.
According to industry sources on March 8, domestic healthcare firms, such as Zikto and My23 Healthcare, will push ahead with an ICO through their subsidiaries in Singapore. Zikto is to establish blockchain-based insurance platform “Insureum Protocol.” Insureum is a compound word of “insurance” and “ethereum.” The company is planning to build a blockchain-based decentering platform in where three parties – insurers, data firms and insurance consumers – can easily distribute and utilize healthcare data and automatically deal with compensation.
For the latest project, Zikto will raise about US$30 million (32.16 billion won) of capital through an ICO of a new ethereum-based cryptocurrency “Insureum (ISR).” It already prepared for the ICO project from October last year, raising US$3.2 million (3.43 billion won) of seed and series A funding, and secured a five-year contract with KB Kookmin Card.
My23 Healthcare also plans to construct a blockchain-based healthcare data sharing platform that allows individuals and businesses to buy and sell gene analysis data through the platform and trade data with cryptocurrency “Alphacon.” With the platform, businesses and institutions can easily purchase healthcare data and use them for studies and individuals who provided data can buy healthcare products and services through My23 Healthcare, according to the company. However, My23 Healthcare hasn’t revealed detailed information like white paper.
Previously, MediBloc proceeded with an ICO and issued virtual currency “Meditoken (MED)” through its busidiary in Gibraltar. MED has been already listed on cryptocurrency exchanges such as Coinrail and Bibox. The company will reveal “blockchain-based personal medical information management app” that enables to manage scattered personal healthcare information in encrypted files on smartphones in the second half of this year.
Healthcare is considered one of sectors that can bring about most innovations through the blockchain technology. For instance, insurance subscribers can collect their daily activities, including the number of steps they took, with wearable devices and distribute and store them in blockchain networks, while insurers can provide virtual currencies in return for data collection.
Insurers must pay a huge cost when insurance subscribers suffer from diseases. However, companies can cut costs by keeping consumers from having an illness if they encourage policyholders to record daily life habits and offer cryptocurrencies in return through the platform.
In addition, insurers can make a smart contract through blockchain and automate a compensation process. They will be able to save time and costs consumed to review contracts by automatically proceeding with compensation when the contract terms are met.
According to market research firm TechNavio, healthcare is one of three promising sectors along with banking financial service insurance (BFSI) and supply chain management (SCM) including logistics.