LY Corporation, parent company of Japanese messaging platform LINE, officially denied any business partnership with Soneium, a Sony-backed Ethereum layer-2 network, despite widespread media reports suggesting otherwise. The denial comes after Soneium's March 12 announcement implied collaboration between the two Japanese tech entities.

What to Know:

• LY Corporation states no business partnership exists with Sony's Soneium blockchain despite media reports
• Soneium defends its announcement claiming it received permission to reference LINE
• LINE's Mini Dapps have reached over 35 million users, with its top app generating $773,000 in launch month

LY Corporation Denies Partnership With Sony-Backed Blockchain Network

The controversy centers on Soneium's announcement describing plans to expand by utilizing LINE's API and Mini Apps platform.

"These reports were based on an announcement made by Soneium on [March 12] that it plans to expand its business by using the LINE API and LINE Mini Apps on our platform, although no business partnership or the like has been established between Soneium and LY Corporation," LY stated in its March 28 release.

When contacted for comment, a Soneium spokesperson defended their position to Cointelegraph: "Our March 12 announcement refers to a collaboration, which involves exploring the integration of onchain Mini Apps within the Line ecosystem. We stand by the accuracy of all content published in our official statement." The spokesperson further emphasized that "LY Corporation has also directed readers to our announcement for context and clarification. Additionally, Soneium received permission to reference Line in that announcement, and the Kaia Mini App is not exclusive to any single provider."

The contradiction highlights growing tensions in Japan's competitive blockchain landscape where established tech companies are racing to capture market share.

Japanese Tech Giants Battle for Web3 Dominance

LY Corporation represents one of Japan's most powerful tech conglomerates, formed through the merger of several major entities including LINE—Japan's largest messaging platform—and Yahoo Japan. The 2023 corporate restructuring brought Line's Web3 division, Line Next, under the LY corporate umbrella.

Line Next has established itself as a significant player in the Japanese blockchain ecosystem since its formation in late 2021. The Web3 venture attracted substantial investment, raising $140 million in December 2023 from investors led by Crescendo Equity Partners.

In January, Line Next launched "Mini Dapps," offering games and social content within the LINE messenger application. This approach mirrors Telegram's successful Mini Apps, which gained immense popularity through tap-to-earn games and cryptocurrency airdrops.

The technology powering Line's Mini Dapps stems from Kaia, a layer-1 blockchain created by merging Line's Finschia chain with Kakao's Klaytn network. Line announced on March 6 that its Mini Dapps had surpassed 35 million users, with its most successful Mini Dapp generating $773,000 during its launch month.

Soneium occupies a similar position in Japan's tech landscape but with Sony's backing. Developed by Sony Block Solutions Labs, Soneium launched its mainnet in January featuring capabilities such as NFTs connected to Amazon Prime Video content.

The blockchain venture appears to be expanding its partnerships despite the controversy with LINE. On March 28, Soneium announced a separate partnership with Animoca Brands aimed at promoting anime culture in Web3 environments.

This collaboration will see Animoca's digital identity platform, Moca Network, create a decentralized identity layer on Soneium. The initial project, Anime ID, will serve as a reputation-based identifier specifically designed for anime enthusiasts.

The strategic focus on anime reflects the massive global interest in Japanese animation. According to Rahul Purini, president of anime streaming service Crunchyroll, research conducted by the platform identified approximately 800 million people outside of China and Japan who regularly consume anime content. This represents a substantial market opportunity, particularly considering Crunchyroll's limited library access in those two countries.

Conclusion

The public disagreement between LY Corporation and Soneium highlights the competitive nature of Japan's evolving blockchain landscape, where established tech giants vie for dominance. As both companies continue expanding their Web3 offerings, the contradiction underscores the importance of clear communication about partnerships in the rapidly developing blockchain sector.