'Toss Bank' Sees Dispute Between Wemade Shareholders and General Investors
Up to 10-Year Comment Suspension According to Regulations
Wemade's mobile MMORPG 'Mir4' is set on the Mir continent, divided between the Bicheon Kingdom and the Sabuk Kingdom, and is a game that realizes a K-fantasy world. Photo by Wemade
[Asia Economy Reporter Han Seung-gon] "Am I some kind of criminal? I can't even speak?"
On the 24th, as Wemade's stock price, which surged riding the non-fungible token (NFT) craze, showed a decline for two consecutive days, a heated argument broke out between Wemade shareholders and investors criticizing the stock in the comment section of the 'Toss Bank' application.
In the process, some users were suspended from commenting for 10 years according to Toss regulations, causing outrage. While comment suspensions are possible, the excessively long duration is the reason for the anger. This appears to be a fierce debate surrounding Wemade, considered a promising NFT stock. Some view this as evidence of the high level of interest in NFT-related gaming stocks.
As of 2:30 PM that day, Wemade was trading at 196,300 KRW, down 1.41% (2,800 KRW) from the previous day. Some suggest that the Financial Services Commission's announcement that NFTs will be classified as virtual assets in principle and included in the virtual asset taxation starting next year may have influenced this.
On the 22nd, Do Kyu-sang, Vice Chairman of the Financial Services Commission (FSC), stated at the first legislative subcommittee meeting on the 17th, "NFTs can currently be covered under the Special Financial Transactions Information Act (Special Act on Reporting and Using Certain Financial Transaction Information) regulations by us (FSC)."
In relation to this, Wemade's stock price fell 16.09% from the previous trading day to close at 198,700 KRW the day before. Wemade is considered a representative promising NFT stock. The game 'Mir4,' released in November last year, applied NFT technology and introduced a 'Play to Earn (P2E)' business model that allows players to earn money while playing, enabling in-game coins to be converted into cash through cryptocurrency exchanges, receiving favorable reviews among users.
Prior to this, Wemade's stock price had been steadily rising since the end of September due to expectations for its NFT business. The stock price, which was in the 70,000 KRW range at the end of September, rose to the 100,000 KRW range last month. This month, it jumped to the 200,000 KRW range. On the 22nd, it surpassed 240,000 KRW, hitting a 52-week high.
However, on the 20th, Kim Kyu-chul, Chairman of the Game Rating and Administration Committee, stated at the 'So What is the Metaverse?' forum hosted by Lee Sang-heon of the Democratic Party that if there is gambling, it is impossible to assign a rating under the current Game Act, and that NFT games with exchange elements cannot be rated. On the 22nd, the FSC's opinion that NFTs could be included under the Special Act and subject to taxation became known, leading to a decline in the stock price.
Foreign and institutional investors sold off Wemade shares worth 31.1 billion KRW and 26.4 billion KRW respectively over two trading days from the 22nd to the 23rd after the regulatory issues became known.
Jang Hyun-guk, CEO of Wemade, speaking at the 2021 G-STAR press conference. [Image source=Yonhap News]
Regarding this, Jang Hyun-guk, CEO of Wemade, previously argued on the 18th that social re-discussion is needed on Korea's laws related to gambling in games. At the 'G-STAR 2021' international game exhibition held at BEXCO in Busan, he told reporters, "In Korea, the issue is not whether the game itself is gambling, but if the game's economy or assets come out of the game, it is defined as gambling," adding, "There is serious doubt whether such criteria fit game play."
Additionally, CEO Jang evaluated the recent announcements by game companies entering the NFT market one after another, saying, "It is a very natural phenomenon to research and follow a trend that has been very successful in the market." On the same day, he announced plans to list the cryptocurrency 'Wemix Coin,' currently listed on the domestic virtual asset exchange Bithumb, on the world's top 50 exchanges.
Meanwhile, a heated debate broke out between so-called 'antis' who speak negatively about Wemade's stock and 'chantis' who hold positive views about their stocks.
Some users were suspended from commenting for 10 years due to accumulated reports. They protested, asking, "Did we commit such a serious offense to deserve a 10-year suspension?" According to a conversation with Toss customer service disclosed by user A, A asked, "What are the criteria for community suspension?" Toss responded, "A post must be reported five times for usage restrictions and deletion to occur," adding, "Since the reports come directly from other users, there is no separate cancellation process."
Regarding the '10-year suspension,' they explained, "If a post is reported 10 times, it is hidden and a warning is issued once, and if this happens 10 times, a 10-year suspension occurs." General investors criticized this, saying, "Are they saying a 10-year suspension is justified?" Another user expressed disbelief, saying, "I could understand if the post was really bad..."
Meanwhile, Wemade will hold an investor relations (IR) session from the 24th to the 29th. The main topics include a review of the 2021 third-quarter business performance and explanations of major business status and outlook.
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