‘Wemix’ Returns to Coinone... Virtual Asset Market in Turmoil

Daxar Delisting Decision Made
Coinone Re-listing Announcement... 55% Surge in One Day

[Asia Economy Reporter Lee Jung-yoon] The domestic virtual asset exchange Coinone has caused an uproar in the virtual asset industry by re-listing the coin 'Wemix' created by Wemade. Although the Digital Asset Exchange Joint Council (DAXA), composed of exchanges Gopax, Bithumb, Upbit, Coinone, and Korbit, had ended support for Wemix trading, reversing this decision has led to concerns about its effectiveness.

On the 16th, Coinone announced support for trading Wemix in the Korean won market. Deposits for Wemix became available from 10 a.m. that day, sales and withdrawals from 6 p.m., and purchases from 6:05 p.m.

The re-listing of Wemix by Coinone on this day has caused waves in the industry. Previously, on November 24 last year, DAXA, the domestic Korean won market exchange council, decided to end support for Wemix trading (delisting). This was due to suspicions that the planned circulation volume of Wemix did not match the actual circulation volume and that disclosures were not properly made. DAXA cited serious violations of circulation volume, inadequate or incorrect information provision, errors in materials submitted during the explanation period, and damage to trust as reasons for delisting. The court also sided with DAXA. The Seoul Central District Court Civil Division 50 (Chief Judge Song Kyung-geun) dismissed the provisional injunction application filed by Wemix LLC against DAXA member exchanges Upbit, Bithumb, Coinone, and Korbit to suspend the effect of the decision to end trading support.

Wemix also faced difficulties in January last year. Wemade sold Wemix but did not properly disclose this to investors. The sales proceeds were reportedly used for the acquisition of SundayToz. At that time, Wemade promised transparent disclosure and announced a plan to restore trust through coin burning.

With Coinone's recent decision, questions have arisen about whether DAXA, which was formed to protect investors and restore trust, is functioning properly. An industry insider said, "Whether to list a coin is a matter for each individual exchange to decide, so it is not necessarily discussed or decided through DAXA," but added, "Since Kim Jae-jin, a lawyer, was appointed as the standing vice chairman to restore trust in coins, reversing a DAXA-level decision makes one question whether DAXA's existence is now meaningless."

It has been confirmed that Coinone did not discuss this decision with DAXA beforehand. A DAXA official explained, "Deciding on trading support is the exclusive authority of each exchange," and "There was no prior consultation regarding the Wemix listing."

Some argue that Coinone's decision aims to attract new investors and increase trading volume and revenue. Wemix is a representative 'Kimchi coin' with many holders, so listing it could bring in investors and increase trading volume. Upon news of Coinone listing Wemix, its price soared. According to the global virtual asset market data site CoinMarketCap, as of 4 p.m. on the 16th, Wemix's price was $1.99 (approximately 2,554 KRW), up 55.09% from the previous day. Additionally, Wemade recorded a daily limit increase on the KOSDAQ market, closing at 54,800 KRW.

Another industry insider said, "It is very rare for a coin to be re-listed after delisting," and analyzed, "Listing Wemix is expected to naturally increase trading volume and fee revenue, so this appears to be a decision prioritizing practical benefits over justification." Wemix is the only case where Coinone has decided to resume trading support after delisting.

Coinone stated that it made the decision to support trading after a proper review process. In an announcement, Coinone said, "Since Wemix had previously been subject to a decision to end trading support, we received additional supplementary documents to prevent a recurrence of similar incidents and thoroughly reviewed the submitted materials, improvement measures, and response plans regarding the reasons for ending trading support," adding, "We confirmed that issues such as circulation volume violations, information provision, and trust damage that occurred during previous trading support have been resolved." It further stated, "If similar market confusion or investor damage recurs, or if promised matters are not fulfilled, we will respond actively."

A Coinone official said, "Since an application for trading support was submitted, we conducted a review according to internal regulations, paying close attention to how much past disqualifications have been resolved and efforts to prevent recurrence," adding, "This was carried out according to individual policies and decisions." The official also said, "In the stock market, there are clear legal standards for re-listing, and re-listing of delisted stocks is not an unfamiliar concept," and added, "In the relatively young virtual asset industry, this sets a precedent for re-listing, which could be a case to discuss when industry-specific laws are established."

The financial authorities are taking a cautious stance on Coinone's re-listing of Wemix. A financial authority official said, "Listing or delisting individual coins is the exchange's own judgment, so it is not a matter for intervention," but added, "The issue of re-listing delisted coins needs to be carefully considered from the perspectives of public interest realization, investor protection, and the reliability of exchanges."