WEMIX token plunges 70% after it’s delisted by Korean exchanges

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South Korea’s largest cryp­to exchanges have announced they will delist WEMIX (WEMIX) — the native token of gam­ing com­pa­ny Wemade’s blockchain plat­form Wemix — alleg­ing the firm pro­vid­ed “false infor­ma­tion” in response to an invest­ment warn­ing it was issued.

Bithumb, Upbeat, Coinone, Kor­bit and Gopax — which are part of a col­lec­tive called the Dig­i­tal Asset eXchange Alliance (DAXA) — announced on Nov. 24 that they would ter­mi­nate con­tract sup­port for WEMIX, with trad­ing set to end on Dec. 8.

In the invest­ment warn­ing issued Oct. 27, DAXA alleged that there was con­sid­er­ably more WEMIX in cir­cu­la­tion than Wemix had dis­closed, and Wemix had pledged to work with DAXA to alle­vi­ate these concerns.

After news of the deci­sion to delist broke, WEMIX Com­mu­ni­ca­tion released a state­ment claim­ing it had sin­cere­ly respond­ed to requests and con­cerns raised by DAXA and cor­rect­ed a num­ber of issues where they believe the cir­cu­lat­ing sup­ply had been over­stat­ed the group, adding:

“The WEMIX team does not acknowl­edge or agree with the unrea­son­able deci­sion made by the Dig­i­tal Asset eXchange Alliance (DAXA)… It is cru­cial to note that the Foun­da­tion has not cir­cu­lat­ed a sin­gle WEMIX more than what we have offi­cial­ly dis­closed thus far.”

The price of WEMIX plum­met­ed fol­low­ing the news, and at the time of writ­ing is down 70.8% with a cur­rent price of $0.476.

The CEO of Wemade Hen­ry Chang has report­ed­ly invest­ed his month­ly salary into the WEMIX token eight times, includ­ing pur­chas­ing 18,928 WEMIX Clas­sic with Octo­ber salary this year. 

Wemade is best known for its hit fran­chise The Leg­end of Mir which peaked at over 200 mil­lion sign ups and includes one of the world’s most pop­u­lar blockchain games, Mir 4. It announced on Nov. 2 that it had raised $46 mil­lion from Microsoft, and asset man­age­ment firms Kiwoom Secu­ri­ties and Shin­han Asset Man­age­ment. Chang said at the time:

“Wemade and Wemix will con­tin­ue to exert efforts to attract more cap­i­tal and active­ly invest to build the glob­al dig­i­tal econ­o­my platform.”

Relat­ed: The rise of mobile gam­ing shared a lot in com­mon with cryp­to gaming

Wemade also announced a plan to release a new econ­o­my plat­form which com­bines non-fun­gi­ble tokens (NFTs) and decen­tral­ized autonomous orga­ni­za­tions (DAOs).

While South Korea is one of the biggest gam­ing mar­kets and blockchain adopters in the world, the coun­try has banned play-to-earn (P2E) blockchain games.

Since being elect­ed on Mar. 10 in a tight race, cryp­to-friend­ly Pres­i­dent Yoon Suk-yeol has hint­ed that the ban could be lift­ed and is look­ing to grow the vir­tu­al asset mar­ket by over­haul­ing “reg­u­la­tions that are far from real­i­ty and unreasonable.”

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