South Korea’s leading blockchain game developer Wemade has filed an injunction lawsuit against four local cryptocurrency exchanges, which recently announced that Wemade had delisted its WEMIX token. On the other hand, Binance has announced that it will offer custody services for the coin. Here are the details…
Legal battle broke out between South Korean exchanges and Wemade
Wemade came to the fore with an injunction decision. Thus, it appears to be taking action against WEMIX’s delisting of South Korea’s four largest and fully licensed cryptocurrency exchanges, Upbit, Bithumb, Coinone and Korbit. On November 24, four exchanges announced that Wemade will delist the WEMIX cryptocurrency on December 8. The blockchain game maker took a big hit from the delist announcement. As we reported on Kriptokoin.com, the price of the WEMIX cryptocurrency fell over 70 percent on the same day. Shares of Wemade and its subsidiaries fell nearly 30 percent as the stock market opened the next day.
According to the data, the fall of Wemade’s stock also created volatility in other game giants in the country. On November 25, Com2uS Holdings shares fell 6.27%, DragonFly’s 8.56% and Netmarble’s 3.39% shares. Exchanges, which are part of the joint local crypto market watchdog DAXA, moved to add WEMIX to its “investment alert” list last month after it misreported circulation numbers.
Wemade CEO blames exchanges
WEMIX regulator gave Upbit an estimate in January that around 245 million tokens were in circulation. However, the actual WEMIX tokens in circulation by October 25 exceeded the estimated approximately 72 million. At an emergency online press conference on November 25, Wemade CEO Henry Chang made a statement. He said the crypto exchange was behind the “unfair treatment” of Wemade. So he accused Upbit of abusing its authority to delist WEMIX.
Chang made similar accusations against Upbit, the largest exchange in South Korea. He noted that the company did not respond to questions about its guidelines on issues surrounding token circulation. He also added that he abused power against Wemade by not responding to their requests for listing standards. However, Upbit noted to local media outlets that DAXA disclosed details of its circulation issues to Wemade. He said that token circulation was not the only issue that led to the Delist announcement. Wemade is also reportedly preparing to file a complaint against exchanges with the Fair Trade Commission (KFTC). “We will be prepared for every eventuality,” Chang said, adding that the company can handle criminal cases.
Binance offers custody for WEMIX
Meanwhile, Wemade announced that Binance Institutional Services will take custody of the native cryptocurrency WEMIX, i.e. offer a custody service. Wemade said that Binance Custody, the institutional custody service of the world’s largest crypto exchange Binance, will manage WEMIX and confirm its circulation volume next week. According to Wemade, around 70% of WEMIX’s total supply, which is 92% of the uncirculated cryptocurrency, will be managed by Binance Custody, while the rest will be tied to either smart contracts or external entities.
Founded in 2000, Wemade has found success in embracing Blockchain technology with video games such as the play-to-win MMORPG MIR4 Global, which gained over 1.4 million concurrent users last year. Meanwhile, the gaming company continues to expand its blockchain ecosystem. It most recently launched its NFT marketplace for “NFT is Life Evolution (NILE)” last Tuesday.
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