Game developer Wemade’s altcoin project, WEMIX, continues to lose value as it battles legally. WEMIX has lost almost 60 percent in the last 24 hours. Here are the details…
Wemade’s altcoin project is being removed from 4 exchanges
South Korean video game developer Wemade’s native token, WEMIX, has been delisted by four of the country’s crypto exchanges after its circulation data was misreported. Bithumb, Upbeat, Coinone, Korbit, and Gopax, part of the Digital Asset Exchange Alliance [DAXA], announced on November 24 that they will end support for WEMIX on December 8. A few months ago, the group issued an investment alert that there was much more WEMIX in circulation than was announced. Wemade agreed to work with DAXA to address these concerns.
But the situation worsened when Wemade CEO Henry Chang, speaking at an online press conference on November 25, criticized Upbit for abusing its power by removing it from the WEMIX listing and threatening to report the exchanges to the Fair Trade Commission. The online gaming company refused to back down. Ultimately, he requested an injunction to prevent other exchanges from delisting his token.
As reported by South Korean news sources, South Korea’s Seoul Central District Court rejected the firm’s proposal after the December 2 hearing. So today, all four cryptocurrency exchanges are delisting the coin. This fueled the depreciation of the value of the cryptocurrency.
WEMIX fell 60 percent
With the spread of the Delist decision, WEMIX Communication stated that it is sincerely following DAXA’s wishes and concerns. He issued a statement saying that the group had fixed a number of issues they felt had been overestimated in circulating supply. “The team does not accept the unreasonable decision made by the Digital Asset Exchange Alliance (DAXA),” he said. It is also “very important to note that the foundation has so far not circulated any more WEMIX than we have officially announced,” he added.
The price of WEMIX dropped after the news. It fell from $0.49 to $0.12 on a daily basis. It is currently changing hands at $0.1981.
Binance came to Wemade’s aid
In the meantime, as we reported as Kriptokoin.com, Binance rushed to the aid of the game company as its legal problems got worse. Wemade’s token will be held under institutional custody by Binance Custody, the world’s largest cryptocurrency exchange. Wemade Co. Ltd., the exchange will manage the asset from next week and verify its circulating volume. In addition, 70 percent of WEMIX’s total supply, which accounts for 92 percent of the uncirculated cryptocurrency, will be overseen by Binance Custody.
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