WEMIX cryptocurrency falls 70% as Korean markets delist it.
To the dismay of the issuers, DAXA asserted that the WEMIX circulating number exceeds that which Wemix has published.
The biggest cryptocurrency exchanges in South Korea have declared they will delist WEMIX (WEMIX), the native token of blockchain platform Wemix owned by gaming company Wemade, on the grounds that the company presented “false information” in response to an investment warning it was given.
The Digital Asset eXchange Alliance (DAXA), which is made up of the companies Bithumb, Upbeat, Coinone, Korbit, and Gopax, announced on November 24 that they would stop contract support for WEMIX, with trade ending on December 8.
Wemix promised to cooperate with DAXA to allay their concerns after DAXA claimed that there was significantly more WEMIX in circulation than Wemix had stated in the investment alert published on October 27.
After learning of the delisting decision, WEMIX Communication issued a statement in which it claimed to have truly complied with DAXA’s demands and concerns and addressed a number of instances where they felt the group’s circulating supply had been exaggerated, adding:
“The WEMIX team does not accept or concur with the Digital Asset eXchange Alliance’s irrational decision (DAXA)… It is important to emphasize that the Foundation has not released any WEMIXes beyond what has been publicly published thus far.
Following the news, WEMIX’s price crashed and is currently trading at $0.476 — a decline of 70.8%.
Henry Chang, the CEO of Wemade, is said to have eight times invested his monthly income into the WEMIX coin, including buying 18,928 WEMIX Classic with his salary in October of this year.
Wemade is widely known for its popular The Legend of Mir franchise, which peaked at over 200 million signups and included Mir 4, one of the most well-liked blockchain games in the world. On November 2, it revealed that it had raised $46 million from Microsoft as well as the asset management companies Kiwoom Securities and Shinhan Asset Management. At that moment, Chang stated:
“Wemade and Wemix will keep making efforts to bring in more funding and actively invest in order to establish the global digital economy platform.”
Related: Crypto gaming and mobile gambling both experienced growth.
Additionally, Wemade disclosed plans to launch a new economic system that mixes non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs).
Despite being one of the world’s largest gaming markets and early adopters of blockchain technology, South Korea has outlawed play-to-earn (P2E) blockchain games.
President Yoon Suk-yeol, who supports cryptocurrencies and was narrowly elected on March 10th, has said that the prohibition may be overturned and that he wants to expand the market for virtual assets by changing “regulations that are distant from reality and absurd.”