Will NFTs deter ticket scalping?
Non-fungible tokens (NFTs), a type of blockchain-mediated digital asset, are emerging as a viable deterrent to ticket scalping enabled by macros, a type of automated computer program, in what the ruling party has characterized as a key election issue that is tied closely to the public interest ahead of the April 10 general elections.
Scalping refers to the purchase of tickets for admission to a concert, sporting or cultural event from a licensed seller intending to resell them at a much higher price. Online scalpers use macros to place purchase orders repeatedly in order to buy tickets in bulk.
Some call for the mandatory application of NFTs to tickets in order to root out unfair shortterm profit gains by a tech-savvy few. Others say the country lacks infrastructure to power the costly method of verification and it will deepen the digital divide by excluding older adults.
The use of NFTs has been limited to art because of the technology’s ability to help prove the authenticity of art pieces. But the tokens are increasingly being used as an actual business model by the gaming, fashion and entertainment industries, largely due to their tamper-proof qualities.
According to sources, Han Dong-hoon, interim leader of the ruling People Power Party, said Monday that he would ban the use of macros in ticket purchases for events including popular entertainment performances and online sporting events. It was part of the party’s election pledges alongside strengthened penalties on the scheme organizers.
“A growing number of cases reported frequent complaints over the resale of macro-purchased tickets at high prices,” he said. “The illegal practice clearly frustrates normal transactions, and is an act of crime undermining public interest. We will outline measures to systematically eradicate it.”
The ruling party plans to revise a related law so that it can impose a minimum prison sentence of one year or fines of up to 10 million won ($7,487) for scalping. This is far heavier compared to the current 200,000 won fine.
The party will map out measures to incentivize ticket sellers to monitor and report those suspected of scalping.
The seemingly populist move comes on the heels of a spike in scalping over the past few years. Data from the Korea Creative Content Agency showed that the number of scalping complaints stood at 4,224 in 2022, up from 785 in 2021. It was a further spike from 359 in 2020.
The nearly five-fold increase is explained in large part by the advent and rapid application of macros.
Industry leaders are moving to embrace NFTs.
Hyundai Card, the organizer of singer Jang Beom-june’s concert series held from Feb. 7 to 22, sold all tickets utilizing NFTs.
Prompting the decision was the rampant scalping of tickets for American pop icon Bruno Mars’ concert here last June.
One scalper posted online in early May, selling a total of eight tickets for a total price of 180 million won.
Live Nation Korea, the ticket sales overseer, soon thereafter announced that at least 60 seats bought by scalpers had been canceled.