Wemade WEMIX Ultimately Delisted from Domestic Exchanges... Biggest Crisis Since Founding (Comprehensive)

[Asia Economy Reporter Kang Nahum] Wemade's cryptocurrency WEMIX is finally being delisted from domestic exchanges. The court dismissed the injunction request to suspend the delisting of WEMIX, siding with the Digital Asset Exchange Joint Council (DAXA). Wemade, which had devoted all its capabilities to blockchain business, is facing the biggest crisis since its founding.

Court Sides with DAXA

On the 7th, the Civil Division 50 of the Seoul Central District Court dismissed Wemade's injunction request to suspend the termination of WEMIX trading (delisting) against four cryptocurrency exchanges belonging to DAXA (Upbit, Bithumb, Coinone, and Korbit).

Accordingly, from 3 p.m. on the 8th, WEMIX will no longer be tradable on exchanges affiliated with DAXA. WEMIX holders who have been using the four exchanges must transfer their WEMIX to personal wallets or overseas exchanges. WEMIX is listed on overseas exchanges such as Bybit, Huobi, and Gate.io.

The court's decision is interpreted as accepting DAXA's claim that the circulation volume of WEMIX is unclear. Earlier, DAXA's lawyers stated at the hearing on the 2nd, "WEMIX did not fulfill its obligation to disclose circulation volume, and despite 16 explanations, the circulation volume did not match among the submitted materials," adding, "We judged that trust recovery is difficult."

Wemade argued, "We recorded the figures accurately down to the decimal point, and the Upbit program showed 'accurate circulation volume' results," but "we received no response afterward and were notified of the termination of trading support." However, the court ultimately sided with DAXA.

Legal disputes over the legitimacy of the delisting are expected to continue. Wemade plans to continue contesting the delisting's legitimacy through the main lawsuit. A Wemade official said, "We respect the court's ruling," adding, "However, we will continue to strive to clarify the unfairness of DAXA's decision to terminate WEMIX trading support."

He continued, "We will prove everything through the upcoming main lawsuit and a complaint to the Fair Trade Commission," and "We will do our best for the normalization of WEMIX trading and the development of the WEMIX ecosystem."

DAXA is also preparing to respond. In particular, it plans to disclose details related to the delisting decision that had not been made public until now due to the court's dismissal. They explained that they had not disclosed specifics to avoid affecting the injunction results or WEMIX prices, but now that WEMIX trading is ending, they can make them public.

Wemade Faces Biggest Crisis Since Founding

The dismissal of the injunction has placed Wemade in its biggest crisis since its founding. This is because most of its current business is concentrated in the blockchain sector. In particular, with the delisting causing a decline in WEMIX's credibility, the plan to onboard 100 games onto the WEMIX platform has become difficult.

As of October, a total of 17 games have been onboarded to WEMIX Play, and contracts to onboard 43 games have been signed so far. With a long way to go to reach 100 onboarded games, the release of the scheduled games has become uncertain.

The decline in WEMIX's value is also a critical blow to Wemade. The price per WEMIX, which was trading in the 2,200 KRW range just before being designated as a watchlist item on each exchange, was trading in the low 470 KRW range as of 8:30 p.m. that day. Since over 90% of WEMIX's total trading occurs on the four domestic exchanges and less than a day remains until delisting, the price could fall further.

The price of cryptocurrency is the key to the success of P2E games. If the price falls, the value of items also decreases, which could lead to the collapse of the in-game economic system. Wemade's goal of making WEMIX the 'base currency' of the P2E gaming world is inevitably becoming more distant.

However, some analysts say that the court's decision could become an opportunity for Wemade to focus more on the global expansion of WEMIX. On the 25th of last month, Wemade CEO Jang Hyun-guk said at a press conference, "We will pursue overseas exchange listings in the mid to long term," adding, "The core of the WEMIX business is global. Even if delisted, there will be no disruption to the WEMIX business."