[Featured Stock] Wemade Plunges to Lower Limit Immediately After Market Opens Following WEMIX Delisting Decision

[Asia Economy Reporter Myunghwan Lee] Wemade plunged to the lower limit immediately after the market opened on the 25th. This appears to be due to the decision by major domestic cryptocurrency exchanges to delist Wemade's proprietary cryptocurrency 'Wemix' the day before.

As of 9:22 a.m. that day, Wemade was trading at 39,400 KRW, down 29.89% (16,800 KRW) from the previous trading day.

The day before, the Digital Asset Exchange Joint Council (DAXA), composed of five major domestic cryptocurrency exchanges supporting KRW trading?Upbit, Bithumb, Coinone, Korbit, and Gopax?announced that trading support for Wemix, designated as a cautionary investment item, would be terminated. Accordingly, these exchanges plan to end trading support for Wemix at 3 p.m. on the 8th of next month.

Wemade immediately opposed DAXA's delisting decision. On the 24th, Wemade issued a statement on the official Wemix website, stating, "We reject this unreasonable decision." Wemade argued, "We have restored the excess circulation volume within a short period, formally explained the current circulation volume, and all of this has been proven and confirmed by the amount of Wemix held by the foundation." A Wemade official said, "We are preparing an injunction application against the termination of Wemix trading support," adding, "We will work to correct this with each individual exchange."

The securities industry assessed that Wemade's blockchain business is facing a serious crisis due to this delisting decision. Heeseok Lim, a researcher at Mirae Asset Securities, said, "The uncertainty regarding the Wemix platform is inevitably increasing due to this delisting, and the expansion of the platform is expected to slow down as the burden on game companies considering onboarding increases."

On the same day, Mirae Asset Securities downgraded Wemade's investment opinion from 'Buy' to 'Neutral' and lowered the target price from 70,000 KRW to 51,000 KRW.