[Why&Next] WEMADE Plummeted 80%... Why Was WEMIX Delisted?

Wemade Builds WEMIX Platform to Lead P2E
Launches Own Mainnet WEMIX 3.0
Decline Triggered by Gap Between Actual Circulation and Plans

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Wemade, which had quickly taken the lead in the P2E (play-to-earn) gaming industry, has fallen sharply. Its stock price plummeted by nearly 80% compared to the beginning of the year, with the decisive factor being the delisting of WEMIX, the key currency of the blockchain ecosystem, from domestic KRW-market cryptocurrency exchanges where it accounted for over 95% of the trading volume.

WEMIX refers to the blockchain-based game ecosystem platform developed by Wemade’s subsidiary, Wemade Tree. Tokens named WEMIX were introduced to be used as a common currency among games operating within this ecosystem and to serve as incentives for users to continue playing. WEMIX can be utilized as a medium for trading activities, revenue realization, developer crowdfunding, airdrop (free distribution) events, and more within the ecosystem.

To build the WEMIX ecosystem, Wemade also established its own mainnet. It separated from the existing Klaytn and launched the WEMIX 3.0 mainnet. This decision was made to escape the stability issues of Klaytn, enhance scalability, and establish WEMIX as the key currency. The coins used before the new mainnet launch were called WEMIX Classic, and the new coins are called WEMIX, with an exchange rate set at 1:1.

Additionally, Wemade positioned the game platform WEMIX Play, the economic platform Nile?which includes non-fungible tokens (NFTs) and decentralized autonomous organizations (DAO)?and decentralized finance (DeFi) as the core of WEMIX 3.0. The WEMIX Wallet was added, and to address volatility issues, a stablecoin pegged to the US dollar called WEMIX Dollar was issued. Wemade also announced plans to onboard 100 blockchain games onto WEMIX Play by the first quarter of next year.

Wemade’s downfall, which had envisioned a rosy future, began with suspicions that the actual circulating supply of WEMIX was higher than planned. Previously, Wemade sparked controversy by selling WEMIX without prior notice, cashing out 227.1 billion KRW. According to CoinMarketCap, as of 8 PM on the 27th of last month, the circulating supply of WEMIX was approximately 318.42 million, about 29% more than the amount disclosed by Wemade. Due to this discrepancy in circulating supply, the four major exchanges listing WEMIX?Upbit, Bithumb, Coinone, and Korbit?designated WEMIX as a watchlist item. These exchanges explained, “It was confirmed that there is a difference between the circulating supply plan information submitted to DAXA member companies and the actual circulating supply,” and “It was confirmed that timely and clear information regarding inaccurate circulating supply data was not provided to investors.”

After two extensions of the watchlist designation, the exchanges decided to delist WEMIX. The significant violation regarding circulating supply played a decisive role, and inadequate or incorrect information provided to investors, as well as errors and trust damage in the materials submitted during the explanation period, were also causes for the delisting.