Key Takeaways
- On Thursday, Digital Asset eXchange Association (DAXA) delists Wemade Co. cryptocurrency WEMIX from major crypto exchanges in South Korea citing mismatch in WEMIX circulation numbers.
- Wemade deemed the DAXA decision as unreasonable and taken through an unfair and obscure process.
- “Upbit said our WEMIX circulation numbers didn’t match. To solve this, Wemade gave them appropriate documentation,” Wemade said.
- “Upbit kept requesting more documentation without a clear guide of what they wanted. Wemade asked them for a clear guide but never received this,” Wemade said.
- This will have a limited impact on Wemade ecosystem due to the company’s business model geared towards the global market, according to Wemade.
- Wemade plans to take legal action against DAXA.
South Korean video game developer Wemade is looking to take legal action against the recent decision of Digital Asset eXchange Association (DAXA) — an alliance formed by Upbit, Bithumb, Coinone, Korbit and Gopax — to delist its cryptocurrency WEMIX from major crypto exchanges in South Korea.
Wemade is a video game studio based in Seoul, South Korea. They are the creators of the Legend of Mir MMORPG series, with The Legend of Mir 2 and its sequel The Legend of Mir 3 being the most popular.
WEMIX, a Global Blockchain Gaming Platform developed by Wemade, enables games of all genres to be transformed into blockchain games.
During a press conference held on Friday, November 25, 2022, Wemade deemed the DAXA decision as unreasonable and taken through an unfair and obscure process.
The WEMIX team does not acknowledge, nor agree with this decision, especially since the company has not been given an explanation about this resolution from DAXA and its leader Upbit, Wemade said in a press statement.
Wemade has expressed dissatisfaction with DAXA for chosing to ‘disclose its decision via media and exchange notice boards rather than directly notifying the WEMIX team’, and ‘depriving the company of the opportunity to correctly communicate the news to its community and investors’.
The DAXA decision comes following WEMIX being flagged with an “Investment Warning” by the Digital Asset eXchange Alliance (DAXA) on October 27, 2022, due to the difference in the expected circulating supply and the actual circulating supply of WEMIX.
Wemade CEO Chang Hyun-guk had assured investors that the possibility of delisting is “almost zero” in a press conference held Nov. 2.
“The difference occurred because the company failed to immediately report additional tokens to the market as it was planning to do so in a quarterly report scheduled for the end of the year,” Chang said on Nov. 2.
However, it seems that DAXA officials were not satisfied with the reason and it led to Thursday’s decision.
“Wemade ensures its community that the WEMIX team has, since then, worked towards resolving the situation and removing the “Investment Warning” flag through the submission of all requested documentation and implementation of measures intended to bring clarity to the matter. This was proven by submitting data for all Foundation wallets and their balances to be cross-referenced with the correct circulating supply of WEMIX,” the company said in a statement.
Wemade said in the press statement that it requested information from Upbit about guidelines on the volume of tokens in the market – however, the company has never received an answer from the exchange.
“It is crucial to note the WEMIX team has never circulated nor sold WEMIX without prior disclosure, and that all tokens are stored securely in Foundation wallets and/or smart contracts accessible only by the Foundation. The WEMIX circulating supply is verified by the globally recognized data service provider CoinMarketCap, proving that the actual circulating supply is no greater than the expected circulating supply submitted to a specific exchange during the review period,” Wemade mentioned.
Impact of the news on WEMIX token was felt immediately after delisting form Upbit, Bithumb, Coinone, Korbit and Gopax. According to data from CoinMarketCap, the token plunged as much as 70% after being delisted by Korean exchanges.
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