South Korean Web3 game developer Wemade’s altcoin, Wemix, experienced a dramatic collapse in value, losing over 60% following an announcement about its delisting by South Korea’s leading cryptocurrency exchanges for the second time. The altcoin’s price plummeted from $0.7225 to $0.2757 within just 15 minutes, triggering panic selling among investors. According to CoinMarketCap, although the price later recovered to $0.36, it still traded at approximately 50% loss compared to the previous day. At the heart of this decision is DAXA, the Digital Asset Exchange Alliance, which effectively represents South Korea’s cryptocurrency space. Major exchanges like Upbit, Bithumb, Coinone, Korbit, and Gopax declared their intent to cease Wemix transactions by June 2, with withdrawal services ending by July 2.
Exchanges Cite Trust and Transparency Issues for Delisting Wemix
The decline in Wemix coin’s value is attributed not just to the delisting decision but also to a significant erosion of trust in the project. According to DAXA, the Wemix Foundation failed to satisfactorily resolve issues that previously led to the altcoin’s inclusion in the “investment warning” list. Particularly, the project’s credibility, inconsistencies in its statements, and security vulnerabilities were decisive factors in DAXA’s decision.
A pivotal incident for Wemix was the $6.2 million hack on the Play Bridge protocol in February, which was disclosed to the public four days after the fact. Although the organization claimed the delay aimed to “prevent panic,” the altcoin still suffered a 40% loss during this period. It is stated that these issues persist, necessitating the cessation of trading support to safeguard investors.
Wemade Firmly Committed
Following the announcement, the Wemix team issued a statement apologizing to their community for the withdrawal of trading support from local exchanges. Despite this decision, the company affirmed their continued belief in the project and their determination to expand the ecosystem. The statement included, “We will harness all our resources and capacities to swiftly overcome the effects of this decision.”
Additionally, the company announced that the 10 billion won ($7.1 million) buyback program, introduced in March, would proceed. This move aims to reduce market supply and stabilize the altcoin’s price. However, the market’s reaction to this plan remains uncertain.
In the wake of this development, Wemade’s publicly traded shares also took a hit, plummeting by 17.45%. Since the start of the year, the loss has amounted to 32%.
