"Survived Without Dying"... Wemade Established a Foothold for a Rebound

Wemix Stock Soars on Coinone Trading Resumption
New Release 'Night Crow' Launching in April

[Asia Economy Reporter Seungjin Lee] WEMADE, which recorded an operating loss last year, has laid the groundwork for a rebound. The cryptocurrency WEMIX resumed trading on domestic exchanges two months after its delisting. With new releases also upcoming, a performance turnaround is anticipated.

WEMIX Resumes Trading on Coinone

Coinone resumed WEMIX trading on the 16th. In an announcement, Coinone stated, “WEMIX has implemented corrective measures to resolve the issues that led to its designation as a cautionary item,” adding, “Upon review, we confirmed that problems such as circulation volume violations, information provision, and trust damage that occurred during previous trading support have been resolved.”

WEMIX was designated as a cautionary item in October last year due to concerns over the reliability of circulation volume plan information. The ‘Digital Asset Exchange Joint Council (DAXA),’ composed of Korea’s five major virtual asset exchanges?Bithumb, Upbit, Korbit, Coinone, and GOPAX?terminated (delisted) WEMIX trading in February.

Coinone’s resumption of WEMIX trading is expected to influence whether other exchanges affiliated with DAXA will also resume trading. When DAXA delisted WEMIX, criticism arose over the lack of clear criteria. However, since Coinone, a major player in virtual assets, has relisted WEMIX, other exchanges cannot simply stand by.

Meanwhile, WEMADE has welcomed this positive development. Ninety percent of WEMIX’s trading volume is concentrated on domestic KRW exchanges. KRW trading is essential to increase trading volume among domestic investors. With Coinone’s relisting, WEMIX’s trading volume is expected to rebound. The stock market responded immediately, with WEMADE’s stock price soaring 30% on the 16th compared to the previous day.

Jang Hyun-guk, CEO of WEMADE, stated during the earnings conference call on the 15th, “Last year was very tough, but we survived without dying. We will create a transparent economic platform where anyone can easily verify transaction records,” expressing his commitment to WEMIX-related business.

Preparing for Mir M’s Entry into China, New Releases Await Launch

WEMADE plans to release the new title ‘Night Crow’ in April. The company is also preparing for the Chinese market entry of ‘Mir M’ and ‘Mir4.’ After recording an operating loss of 80.5 billion KRW last year, WEMADE forecasts returning to profitability in the first quarter.

CEO Jang said, “Most of the operating loss was due to investments in new businesses,” adding, “Mir M is achieving good results, and if things go well, we expect to turn profitable in the first quarter of this year, possibly as early as next month on a monthly basis.” Regarding the China market entry, he said, “Once publishing contracts are signed, licenses issued, and service schedules confirmed, we expect to announce them sequentially within the year.”

However, not all outlooks are rosy. The lack of established accounting standards related to virtual assets is a concern. The Financial Supervisory Service will mandate footnote disclosures related to virtual asset issuance and holdings this year. Related standards are also expected to be revised. Due to various contentious issues regarding accounting standards, it is uncertain whether this will act solely as a positive factor for WEMADE.

Last year, WEMADE faced controversy after recognizing the proceeds from the sale of WEMIX as revenue all at once in Q4 2021. Following advice from an accounting firm that the proceeds should be accounted for as deferred revenue, WEMADE has been treating the securitized WEMIX sales as ‘liabilities’ and excluding them from revenue.