Daksa “Providing unclear information, such as exceeding the distribution amount”… Trading is not possible from the 8th of next month
Wemix, which was priced at 2,000 won, sat at 600 won… Affiliate shares also have a lower limit
Jang Hyeon-guk CEO “Upbit does not provide guidelines for distribution plan… “Super Gap” backlash.
The Joint Digital Asset Exchange Advisory Body (DAXA) has decided to remove the virtual asset Wemix (WEMIX) issued by domestic gaming company WeMade from the domestic virtual currency exchange. This is because there is a difference between the distribution plan information submitted by Wemade to each exchange and the actual distribution volume, so no clear information has been provided to investors. As a result, from 20:00 on 8th next month, Wemix trading will be disabled on the five major virtual currency exchanges in Korea, including Upbit, Bithumb, Coinone, Corbit and Gopax.
On the 25th, WeMade CEO Jang Hyeon-guk (pictured) held an online meeting and strongly protested Daksa’s decision, calling it “Upbit’s super abuse.” He also said he would go through the process of challenging the delisting decision by filing an application for an interim injunction with the stock exchanges.
CEO Jang said on the day, “(Wemade) is the only exchange that has submitted a distribution plan to Upbit.” He said, “I also found out about the end of transaction support by looking at the trade notice,” he said.
Wemix is a coin project that has gained attention as a platform for blockchainizing existing games. At one time, the market capitalization reached 3.6 trillion won. The Wemix investor community number is approximately 8,000.
This situation started on the 26th of last month when the market capitalization of Wemix doubled from the previous day. On CoinMarketGap, Wemix’s market cap, which was around 300 billion won on the 25th of last month, was marked at around 800 billion won on the 26th with no significant price changes. WeMade said, “The update was made because Wemix’s distribution volume was not properly reflected in the Coin Market Gap,” but it failed to allay market distrust.
Daksa designated Wemix as an investment caution on the 27th of last month and extended it by another week on the 17th of this month.
On this day, CEO Jang insisted that virtual currency exchanges, including Upbit, apply strict standards to Wemix. He said, “There are a lot of coins on Upbit that haven’t disclosed their distribution plan at all,” he said. He said, “We are doing our best to receive the results of the (temporary injunction) before the end of transaction support scheduled for the 8th of next month” and “we will also investigate whether Upbit is held criminally liable.” He also announced that he would reveal the recording of Zoom meetings and calls he had with Upbit.
However, Daksa said, “The excess of distribution over the distribution plan is a considerable amount of overflow at the time of designation as a warning feature, and the degree of excess is judged to be critical.” fail the purpose of protecting investors by announcing unconfirmed information about whether or not to terminate, etc. through various media reports. He later revealed that “several errors were found in the data presented during the exploratory period” and that Wemix’s declining reliability was a background to this decision.
An Upbit official said, “The virtual asset issuer’s plan to sell virtual assets (distribution plan) is one of the key investment information investors should be aware of.” Furthermore, he said, “In the case of Wemix, it is true that we pre-presented (distribution plan), but it was very different from the actual distribution volume.” Wemics announced the estimated distribution volume by the end of October at 245.96 million, but the confirmed issuance on CoinMarketCap, a virtual currency brokerage site, was 318.42 million, about 72 million more than expected .
The market for virtual currencies is rough. Volatility in the virtual currency market is expected to increase further as the US FTX Exchange files for bankruptcy, domestic exchange Gopax’s ‘GoFi’ deposit service has delayed withdrawals and news of Wemix’s delisting. Wemics, which was asking for 2,000 won, dropped to 600 won after news of the end of the deal.
This decision to end transaction support only applies to the top 5 virtual currency exchanges that make up Daksa, and Wemix transactions are possible between other virtual currency exchanges, foreign exchanges, and individuals as before. However, since Daksa member companies account for the majority of trading volume in the domestic virtual currency market, it seems inevitable that WEMIX investors will suffer losses.
On this day, in the domestic stock market, the stock prices of the WeMade game company and its affiliates fell to the lower limit. In the KOSDAQ Market, WeMade closed trading at 39,400 won, down 16,800 won (29.89%) from the previous trading day. Wemade play, a subsidiary of Wemade, closed at 15,100 won, down 6,450 won (29.93%) and Wemade Max, down 5,500 won (29.92%) at 13,000 won, falling to the price limit (30 %).
The stock market believes a slowdown in the expansion of the Wemix platform is inevitable. Hee-seok Lim, a researcher at Mirae Asset Securities, said, “Platform expansion will slow due to the increased burden on game companies considering onboarding (linking).” On this day, other P2E (make money by playing) gaming companies such as Com2uS (2.64%), Com2uS Holdings (6.38%) and Netmarble (3.39%) also declined.
