Wemade WEMIX 'Delisted' from 5 Major Exchanges... "Excess Circulation Volume is Significant and Serious"

[Asia Economy Reporter Kang Nahum] WEMIX, a cryptocurrency issued by Wemade, will be delisted (trading support terminated) from the top five domestic cryptocurrency exchanges.

On the 24th, the Digital Asset Exchange Joint Council (DAXA), composed of Upbit, Bithumb, Coinone, Korbit, and Gopax, held a meeting and decided to terminate trading support for WEMIX. Accordingly, from 3 PM on the 8th of next month, WEMIX will no longer be tradable on these exchanges.

DAXA explained the reason for terminating WEMIX trading support as follows: "We judged that the circulating supply significantly exceeded the distribution plan submitted to DAXA member companies, which is a serious issue," and added, "It was confirmed that incorrect information was provided to investors, and unverified information regarding DAXA's decision to terminate trading support was repeatedly announced through the media, causing confusion."

They continued, "During the explanation period, various errors were found in the submitted materials, and multiple corrections or revisions occurred regarding important information such as circulating supply after submission, resulting in an unprecedented situation where it is difficult to restore trust in the project's internal information identification and management capabilities."

Earlier, on the 27th, DAXA designated WEMIX as a cautionary investment item due to discrepancies between the expected and actual circulating supply and the lack of clear disclosure of trading volume. Subsequently, the cautionary period was extended twice.

According to Wemade, the reasons for the discrepancy between the expected and actual circulating supply of WEMIX are ▲ liquidity pool supply for mainnet service (25 million units) ▲ deposits for borrowing (35.8 million units) ▲ ecosystem expansion and operation (11.65 million units), which were not included in the actual circulating supply. At that time, Wemade explained, "According to the expected circulating supply submitted to exchanges in January this year, the expected circulating supply of WEMIX by the end of this month is 245.97 million units," and "As of the 25th of this month, the actual circulating supply is 318.42 million units, resulting in a difference of 72.45 million units."

This trading support termination decision applies only to the five major cryptocurrency exchanges that make up DAXA. Trading of WEMIX is still possible on overseas exchanges and between individuals.

Wemade plans to take legal action against DAXA's decision. A Wemade official stated, "We are preparing a provisional injunction against the termination of WEMIX trading support. We will correct this with each individual exchange."

Meanwhile, the price of WEMIX, which was trading in the 2,200 won range, plummeted immediately after DAXA's announcement of trading termination and was trading in the 600 won range as of 8:30 PM on the same day.