Wemix plunged after bankruptcy, but… Will it be revived via coin market listing? [위클리 코인리뷰]

Weekly Coin Review is a corner that looks back on the cryptocurrency (virtual asset) market for a week. We will organize and deliver the market information which is too complicated and scattered to the “Coiners”. This is a review from last week so may differ significantly from current quotes. All investment decisions and resulting investment results are the responsibility of the investor. [편집자]

Wemade’s coin, WEMIX, which is the representative of P2E (make money playing) games, was eventually delisted from the top four cryptocurrency exchanges in Korea. The expectations of Wemix home holders plummeted in an instant. Wemix price reached a quarter of the level ahead of the decision to liquidate the joint digital asset exchange advisory body (DAXA, Daksa).

However, WeMade is showing various efforts, such as listing Wemix on the national coin market exchange, Gdac, and incinerating 10 million dollars (about 13 billion won). However, the reaction from the industry and coin investors is cold. In a situation where ‘confidence’ has already collapsed, the possibility of a revival of Wemix is ​​slim. WeMade’s calculation method is getting complicated.

Bitcoin price recorded a low of 22,086,981 won (8th, Thursday) and a high of 22,730,052 won (9th, Friday) from December 5 to 11, according to CoinMarketCap.

This week, Bitcoin averaged 22 million won, but ultimately failed to cross the 23 million won mark. It can be seen that the rate of increase for the week was only 0.13% and it has just recovered the uptrend.

For now, the cryptocurrency market, including Bitcoin, should hold its breath as it pays attention to the size of interest rate hikes by the US Federal Reserve. At the FOMC meeting on the 13th and 14th, the Fed is expected to take a ‘big step’ by raising interest rates by 0.5 percentage points as the labor market, including employment, shows favorable trends.

In fact, according to Dunamu’s fear/greed index, on the 11th the psychological index of the cryptocurrency market was 43.14, which is in the “neutral” stage. A value of 0 indicates a market downturn due to fear and a value of 100 indicates a market boom due to greed.

Cryptocurrency Weekly Won Price (Dec 5-11). (From top) Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Dogecoin (DOGE), Ada (ADA). [사진 코인마켓캡]

Other top altcoins, Ethereum and Ripple, have also performed similarly to Bitcoin. However, Dogecoin and Ada are closing the week lower than they started the week. Notably, Dogecoin, which had surged in anticipation of Twitter’s adoption as a payment method, has been steadily declining since an image featuring Twitter’s coin logo was exposed on the market on the 5th.

WEMIX cryptocurrency, created by WeMade, was kicked out of the national market exchange won all at once. After the court’s decision to dismiss the application for an interim injunction, Wemix’s price plunged more than 44% in about an hour. Among them, the focus is on being listed on the National Coin Market Exchange and being able to trade Wemix again.

On the 7th, the Civil Settlement Division 50 of the Seoul Central District Court rejected WeMade’s request for an injunction to stop supporting Wemix transactions (delisting) against the four major domestic cryptocurrency exchanges, including Upbit, Bitsum, Coinone and Corbit. As a result, as of 3.00pm on the 8th, Wemix will not be able to trade on these exchanges.

According to CoinMarketCap, the price of Wemix, which was 846 won at around 19:40 on the 7th, shortly before the news of the dismissal decision, plunged to 469 won at 20:45. That’s a 44.56% loss in just one hour. At around 14:40 on the 8th, shortly before the delisting, it fell to 169 won, forming the lowest price ever (since the first listing on October 29, 2020). As of 15:30 on the 11th, it is trading at 560 won.

WEMIX Price Chart Dec 7-11. You can see the sharp drop after the court announced it was rejecting the application for an injunction. [사진 코인마켓캡]

Investors who currently have Wemix on the 4 major exchanges and will continue to hold Wemix should send Wemix to their personal portfolio or to overseas exchanges. Overseas exchanges where Wemix is ​​listed include MXC, GateIO, Huobi Global, Crypto.com, Lbank, Kucoin, Bybit, Bitget, and OKEx. Withdrawal support ends at 3pm on January 5, 2023.

In the midst of this, GDAC, a cryptocurrency exchange operated by Peertech, decided to support Wemix trading from 5.30pm on the 8th. However, since GDAC is a coin exchange that does not support KRW transactions, Wemix can only be traded via cryptocurrencies such as Bitcoin and Ethereum. Han Seung-hwan, CEO of Peertech, said, “We have decided to include Wemix to protect investors.”

Meanwhile, WeMade said, “Again, we deeply apologize for causing concern to WeMade shareholders and Wemix investors.”

The Goldman Sachs logo displayed on the New York Stock Exchange. [로이터=연합뉴스]

Investment banking (IB) Goldman Sachs is preparing to acquire an undervalued cryptocurrency firm after cryptocurrency exchange FTX files for bankruptcy.

On the 6th (local time), Matthew McDermott, Head of Digital Assets at Goldman Sachs, said in an interview with Reuters, “The FTX crisis has increased the need for trusted and regulated cryptocurrency companies. We see it as an opportunity to move forward,” he said. “The market mood has changed since the FTX crisis,” he explained, “as the core technology and growth value is still positive, new investments will help recover the market.”

However, no specific goals were mentioned. However, he added that it was not a simple plan, but a detailed preparation phase, such as announcing that it was undergoing due diligence for several target companies.

Goldman Sachs has invested in 11 cryptocurrency companies to date, including cryptocurrency data and blockchain management services. Currently, there are 70 employees in the digital asset management team in charge of cryptocurrency investments.

Reuters reported that Goldman Sachs appears to have sensed a long-term opportunity to seriously enter the cryptocurrency market, as it is an investment bank with ample room to move forward with a multibillion-dollar takeover of a cryptocurrency company.

In November, Goldman Sachs CEO David Solomon also said in an interview with CNBC, “I saw the FTX crisis and thought the cryptocurrency market was very speculative.”

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Mirae Asset Global Investments and Samsung Asset Management plan to launch virtual currency (ETF) futures in Hong Kong in the first half of next year.

According to the financial investment industry on the 7th, Mirae Asset Global Investments and Samsung Asset Management, respectively, through their local Hong Kong companies, listed ETFs investing in Bitcoin and Ethereum futures on the Chicago Mercantile Exchange (DME) with l ‘Hong Kong Securities and Futures Commission (SFC). While no specific schedule has been announced at the moment, it is said to be aiming for a release in the first half of next year.

Currently, cryptocurrency-related ETFs are not allowed in Korea, but Hong Kong recently issued related guidelines and approved cryptocurrency futures ETFs. However, only futures ETFs have been approved, not cryptocurrency spots. A policy has also been added that is limited to companies that have managed exchange-traded funds in the country for more than three years and have followed the regulations in an exemplary manner.

Jamie Dimon, CEO, JP Morgan Chase. [UPI=연합뉴스]

Jamie Dimon, CEO of JP Morgan Chase, reiterated his critical stance on cryptocurrency.

On the 6th (local time), Dimon said in an interview with CNBC, “Cryptocurrency is a sideshow (a small performance shown in a circus to attract guests)” and stressed that “the media spends too much time on it.”

He then compared the cryptocurrency to “Pet Rock” and criticized it as “artificially manipulated worthless product.” “Bitcoin prices can be manipulated in any way and we are not even sure if the cryptocurrency market is a real market,” she said.

However, he added that there are benefits to blockchain technology, adding, “(Criticisms of cryptocurrency) don’t mean that blockchain isn’t real.”

Dimon has been a skeptic of Bitcoin and cryptocurrencies for years. In 2017, he denounced bitcoin as a “fraud man” and threatened to fire any employee who touched cryptocurrencies.

Since then, he has maintained a critical view regardless of Bitcoin’s price, denouncing Bitcoin as “worthless” even last year.

Earlier, on October 13 (local time), Dimon attended the International Finance Institute (IIF) event held in Washington DC and criticized “cryptocurrency as a decentralized Ponzi”.

Reporter Hyungjun Yoon [email protected]