Microsoft-Backed WEMIX Token Delisted from Korean Exchange

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The top 5 cryptocurrency exchanges in South Korea announced on Thursday that they will delist the gamefi token WEMIX. According to local reports, the move came after WEMIX provided false information which led to investor confusion.

WEMIX Token Drops Over 60% After Delisting From Top 5 Korean Exchanges

The Digital Asset Exchange Alliance (DAXA), formed by South Korea’s leading five exchanges Upbit, Bithumb, Coinone, Korbit and Gopax, said it would delist the game token WEMIX and accused it of providing false information. The decision comes weeks after Microsoft invested $14.8 million in WEMADE, the blockchain gaming company behind the WEMIX token.

DAXA stated in the announcement that WEMIX provided false information through the DART disclosure. DAXA added that the misleading information created confusion among investors and made it difficult to identify and manage important information related to the project.

Trading support for WEMIX by cryptocurrency exchanges will end at 3 p.m. on December 8, it said in the announcement. The reports sent the WEMIX token plummeting more than 60% on each of the five major exchanges.

But the decision wasn’t surprising considering four of five South Korean cryptocurrency exchanges added the token to an “investment warning” list in October, citing false information about circulating volume. WEMIX said there were about 245 million tokens in circulation in January, while the actual figure was about 72 million higher than estimated, WEMADE, a cryptocurrency exchange that was raided earlier this year following the LUNA crash, told Upbit.

DAXA then launched a 2-week investigation into the matter and warned that it may terminate its cooperation with WEMIX if the matter remains unresolved after the investigation. In response, WEMADE said it made a mistake by omitting some of the WEMIX tokens used to provide liquidity to its blockchain mainnet, as well as deposits used to issue loans and manage the ecosystem.

Microsoft invests $14.8 million in WEMIX

In early November, WEMADE raised $46 million in a funding round from Shinhan Asset Management, Kiwoom Securities and tech giant Microsoft, which contributed $14.8 million. Shinhan and Kiwoom invested $21.2 million and $10.5 million, respectively, according to regulatory filings.

“This is a meaningful investment from a well-known financial and strategic investor with a proven track record. Wemade and Wemix will continue to make efforts to attract more capital and actively invest in building a global Crypto economy platform.”

– Henry Chang, CEO of WEMADE.

Developed by a subsidiary of WEMADE, WEMIX is a blockchain-powered global gaming platform that provides users with a wallet and Crypto asset marketplace. In October, the platform launched the WEMIX stablecoin, which is pegged to the U.S. dollar but fully backed by USDC.

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about the author

Tim Fries is the co-founder of The tokenist. He holds a Bachelor of Science degree. BS in Mechanical Engineering from the University of Michigan and MBA from the University of Chicago Booth School of Business. Tim was a Senior Associate in the investment team in RW Baird’s US Private Equity division and co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.

Information source: compiled from THETOKENIST by 0x information.Copyright belongs to the author Tim Fries, without permission, may not be reproduced

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