Wemade's Jang Hyun-guk: "Coin Scam? ... Why Cut Open the Goose That Lays Golden Eggs?"

Jang Hyun-guk, CEO of Wemade (Photo by Wemade)

[Asia Economy Reporter Kang Nahum] Wemade’s CEO Jang Hyun-guk has come forward to explain after controversy arose over the company’s large-scale short-term sale of its cryptocurrency 'Wemix,' which sparked accusations of a 'coin rug pull.' He stated, "Why would we cut open the goose that lays golden eggs?"

On the 12th, CEO Jang appeared on the YouTube channel ‘Algoran’ and said, "There is a vision that will grow even bigger in the future, so unless we were to rug pull, it is logically inconsistent to sell a large amount just to gain immediate profit."

He continued, "Out of the 1 billion coins issued, the company holds 83%," adding, "When explaining blockchain simply, it is said that multiple ledgers exist, making forgery impossible, and anyone can view those ledgers. Wemix is no different. On the blockchain, hiding information is impossible."

He also announced that future sales of Wemix will be disclosed after the fact. Currently, the disposal of cryptocurrencies classified as ‘intangible assets’ in accounting is not subject to mandatory disclosure. CEO Jang said, "I realized this time that (Wemix sales) is sensitive information," and added, "Since disclosing every corporate activity could cause other issues, we will consider ways to provide specific information in a timely manner." He further stated, "Starting with the disclosure of the Q4 2021 earnings, we will also disclose the volume of Wemix."

CEO Jang also explained the plan for future sales volume. He said, "When listing on exchanges, you have to submit a schedule for how tokens will be released into the distribution network," and added, "Our current release schedule is roughly 10 million tokens per month, about 1%."

He said, "Because there were people who believed in Wemix and participated in the ecosystem, and those who trusted Wemade’s vision and bought shares, we were able to execute strategies to realize our dreams," and continued, "Including those people, we are doing these things so that all of us can succeed. The construction of the Wemix ecosystem is the same. Please understand that this is a step toward achieving a greater vision."

Meanwhile, after it was revealed on the 11th that Wemade had sold a large amount of Wemix, the price of Wemix dropped nearly 30% during trading that day. Wemade’s stock price also closed at 138,100 KRW, down 8.84% from the previous day. Subsequently, some media reports suggested that Wemade’s unannounced large-scale disposal of Wemix had deceived investors, and investors criticized the act of dumping tokens on the market without any prior notice as irresponsible.