Hyundai Card, the credit card company under Hyundai Motor Group, is using non-fungible tokens (NFTs) to tackle ticket scalping — a practice where bots buy tickets in bulk and resell them at higher prices.
Ticket scalping is a pervasive global issue, particularly rampant in Asia. According to Imperva’s 2023 Bad Bot Report, 83.4% of global entertainment website traffic in 2022 originated from automation. Currently, in many markets, automated software accounts for over 40% of online ticket bookings.
To prevent and find a solution to ticket scalping, Hyundai introduced a “macro-blocking” system that restricts the transfer and resale of tickets. Only verified users can purchase and use tickets, and resale of NFT tickets is not allowed once purchased.
The new NFT-based solution is being applied for the first time in the ticket sale for the upcoming Jang Beom-June concert in Seoul next month.
All tickets for the Jang Beom-June concert are sold on KONKRIT, the NFT marketplace app established by Hyundai Card and the student-run tech startup Like Lion, as part of their joint NFT venture, Modern Lion.
The solution not only facilitates fair ticket sales but also ensures impartiality in the ticket lottery by using verifiable numbers generated randomly.
While this represents the first use of this new approach, Hyundai Card has previously employed NFTs for concert ticket sales.
In 2022, the company issued NFT tickets for a concert featuring Dosii, a Korean duo featuring producer Choi Jong-hyuk and vocalist Jeon Ji-hye. NFT ticket holders enjoyed exclusive perks, including a central first-row seat for the performance and the chance to meet the musicians.
The ticketing industry has seen significant influence from blockchain technology and NFTs in various sectors.
Examples include Platinium Group introducing NFT race tickets for the Monaco Grand Prix and Flybondi collaborating with TravelX to offer flight tickets as NFTs for increased flexibility, transparency, and security. Even Ticketmaster has begun allowing event organizers or vendors to make sales available primarily or exclusively to owners of specific NFTs.