On May 2, WEMIX, a cryptocurrency issued by the Korean game company Wemade, received its second delisting decision from domestic exchanges.
Bithumb, a member of the Digital Asset eXchange Alliance (DAXA), announced on this day that it had decided to delist WEMIX, which had been designated as an item of caution. DAXA is a consultative body of five virtual asset exchanges?GOPAX, Bithumb, Upbit, Korbit, and Coinone. The decision applies to all exchanges where WEMIX is listed, including Bithumb, Coinone, Korbit, and GOPAX.
Kim Seokhwan, CEO of WEMIX Foundation, is bowing his head in apology at an emergency meeting regarding the hacking damage of WEMIX cryptocurrency held on March 17 at Hancom Tower in Pangyo, Bundang-gu, Seongnam-si, Gyeonggi-do. Photo by Yonhap News
DAXA explained the background of the decision to end trading support by stating, "The materials submitted by the foundation were insufficient to resolve the reasons for the caution designation," and "After a comprehensive review of factors such as the issuer's credibility and security, WEMIX did not meet the criteria for maintaining trading support."
As a result of DAXA's decision, it is expected that Wemade's core business?blockchain games based on WEMIX?will inevitably be affected. WEMIX trading will be suspended starting at 3:00 a.m. on June 2, and withdrawal support will end on July 2.
Previously, on March 4, Wemix Foundation, Wemade's blockchain subsidiary, announced on its website that "on February 28, approximately 8,654,860 WEMIX coins were abnormally withdrawn due to a malicious external attack on the Play Bridge Vault." Play Bridge is a system for transferring WEMIX to other blockchain networks, and the Play Bridge Vault is the wallet that stores virtual assets during this process. At the time, the amount was equivalent to about 9 billion KRW based on the WEMIX market price.
In response to this announcement, DAXA designated WEMIX as an item of caution, stating, "There was an inadequate disclosure of important information that could significantly affect users' reasonable investment decisions or the value of the virtual asset, and there was a lack of clear explanation regarding the cause of the incident and compensation plans for victims." Despite two extensions of the caution designation following explanations and investor compensation plans from Wemade, delisting ultimately could not be avoided.
A Wemade official stated, "Wemade will actively pursue various business initiatives, including additional listings on global exchanges, based on our firm commitment to the WEMIX and blockchain business."
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