[Asia Economy Reporter Lee Jung-yoon] WEMIX, the coin issued by Wemade that has been delisted (trading support terminated), is trading at a relatively high price on Upbit, the largest cryptocurrency exchange in South Korea by market share. This phenomenon appears to be due to investors buying at low prices.
According to the global cryptocurrency market tracking site CoinMarketCap as of 8:13 AM on the 25th, the price of WEMIX was recorded at $0.4816 (approximately 640 KRW), down 70.56% from the previous day. In contrast, on Upbit, it was traded at $0.5934 (approximately 789 KRW), which is 23.21% higher than the global price. Upbit even issued a 'caution' alert stating 'a price difference of more than 20% from the global market price has occurred.'
The price of WEMIX began to plummet sharply from 7:25 PM the previous day. The joint council of the five major Korean won-market exchanges, DAXA, decided to delist WEMIX, and each exchange announced this around 7:40 PM, after which the price fell further.
DAXA explained, "We judged the excess circulation volume compared to the distribution plan submitted by member companies to be significant," adding, "During the explanation period, various errors were found in the submitted materials, and multiple corrections or amendments occurred regarding important information such as circulation volume after submission, resulting in an unprecedented situation where it is difficult to restore trust in the project's internal information identification and management capabilities." WEMIX will no longer be tradable on the five major exchanges from 3 PM on the 8th of next month, and withdrawals will also be blocked after a certain period.
Despite the delisting decision and the sharp drop in WEMIX’s price, the relatively maintained price level on Upbit is interpreted as being due to the influx of short-term traders. Similarly, during the Terra-Luna incident, many buyers expecting a rebound entered the market after the price plummeted. Short-term trading movements were detected even before the termination of trading support was decided. Posts such as "Hold on to WEMIX" hoping for listing maintenance appeared on coin-related communities. After the delisting decision, Wemade prepared a provisional injunction application against the termination of trading support, and WEMIX trading is still possible outside the five major exchanges, which likely influenced expectations of capital gains from future price increases. Community posts included comments like "I bought WEMIX and my money disappeared" and "I had an illusion that it would rebound."
An industry insider said, "Since Upbit has a large trading volume, it is easier for short-term traders to flock there," adding, "Because there is a large volume of buy orders, the price is formed higher than on other exchanges."
Due to such movements, Upbit accounted for most of the WEMIX trading volume. According to CoinMarketCap data, Upbit’s daily WEMIX trading volume was $458.18 million (approximately 609.5 billion KRW). This accounts for 82.68% of the total trading volume of all exchanges listing WEMIX and is 6.96 times higher than Bithumb, which ranks second.
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