Game Industry: "Preventing a Second WEMIX Incident"

Com2uS and Netmarble Virtual Currency Circulation Volume Revealed
"Real-Time Circulation Monitoring System Needed" Also Pointed Out

[Asia Economy Reporter Kang Nahum] As Wemade's cryptocurrency WEMIX has been delisted from the four major domestic cryptocurrency exchanges, domestic game companies are also stepping up efforts to enhance the transparency of their own cryptocurrency circulation volumes to prevent a second WEMIX incident.

Preventing a Second WEMIX Incident... Game Companies Strengthen Transparency in Circulation Volume Disclosure

According to the industry on the 13th, Com2uS's cryptocurrency XPLA recently issued a transparency report to regularly disclose its circulating supply. This report aims to ensure transparent and sustainable growth of the XPLA ecosystem, provide key information to XPLA investors, and maintain balanced information to preserve the value of decentralization. In addition to regular quarterly updates, Com2uS will provide prior notice if there is a change of more than 0.1% in the total issued volume, and notify within 14 days if there is a 0.005% change in volume.

This information is provided not only through XPLA's official channels but also on major disclosure sites such as Xangle and CoinMarketCap. An API that allows real-time verification of on-chain circulating supply data has been provided to CoinMarketCap, and soon general investors will be able to check it at a glance.

XPLA also undergoes continuous external audits by a global accounting firm to verify the project's objective soundness. The external audit includes ▲identification of risk factors regarding the existence and ownership of virtual assets ▲verification of the quantity of virtual assets on the ledger against the blockchain ▲proof of the company's ownership of the virtual assets ▲verification of virtual asset management such as third-party custody and the third party's internal controls.

Netmarble is also managing risks by linking Mavrex's real-time circulating supply to CoinMarketCap. It has also disclosed quarterly circulation plans to the cryptocurrency disclosure company Xangle. According to the disclosure submitted by Netmarble to Xangle, the circulating supply for the fourth quarter of this year is 36,091,923 units. This is not significantly different from the real-time circulating supply of 36,091,774 units linked to CoinMarketCap.

The reason domestic game companies are striving to make cryptocurrency circulation volume disclosures more transparent is that circulation volume is a factor that determines coin prices in the virtual asset market. When circulation volume increases, the coin supply also increases, causing prices to fall, and investors inevitably suffer losses. The recent termination of trading support (delisting) for WEMIX was mainly due to Wemade increasing the circulation volume without clear disclosure.

No 'Too Big to Fail' in the Coin Market... But Discrimination Against 'Kimchi Coins' Is a Problem

The reason game companies were able to attract investors through cryptocurrency issuance is based on the logic of 'too big to fail.' The investor psychology that 'projects by major domestic game companies are unlikely to fail easily' played a significant role in enhancing the credibility of game companies' cryptocurrencies. However, the recent WEMIX incident firmly imprinted the message that 'there is no too big to fail in coins' in the market.

There are also criticisms that domestic exchanges apply excessively strict delisting standards only to domestic cryptocurrencies. In fact, many overseas cryptocurrencies traded domestically do not provide circulation volume information.

Jang Hyun-guk, CEO of Wemade, also pointed out, "The problem starts with the difference between circulation plans and circulation volume, and even now, there are countless coins on Upbit without circulation plans," and questioned, "Why are the strict standards applied to WEMIX not applied to other coins?"

Therefore, the industry is raising the opinion that unified circulation volume disclosure standards are needed for both domestic and overseas cryptocurrencies. Xangle recently pointed out in a report, "Incidents like WEMIX can happen at any time," and emphasized, "Clear standards for circulation volume, guidelines related to disclosure, and real-time circulation volume monitoring systems are necessary."