South Korean gaming firm WeMade has lost its legal battle against the country’s largest crypto exchanges – who have decided to delist their Wemix Coin (WEMIX).
WEMIX was issued by the Digital Asset Exchange Association (DAXA) in October with an “investment warning”. DAXA is a conglomerate that includes four of the largest exchanges in the country, namely Upbit, Bithumb, Coinone, and Korbit.
WeMade previously filed a legal complaint with a branch of the Seoul Civil Court – but it was dismissed on 8 December. yonhap informed of.
This means exchanges are now in the clear to delist the coin – and will begin doing so later this month, with the process expected to be completed by early January.
The ruling saw a nearly 50% drop in the value of WEMIX on the upbit on the morning of December 8 (KST). coingeco data The coin is down almost 75% in the last 24 hours at the time of writing. Some $189 million worth of WEMIX has been transacted on Upbit in the past 24 hours, according to CoinGeck data.
DAXA was formed in the wake of the collapse of Terra ecosystem coins in May – After politicians criticized the exchange For failing to make the decision to delist the Uniform Terra Luna Classic (LUNC).
WeMade had high hopes for its coin, which underpins many of its blockchain gaming operations. But exchanges have expressed concern about the number of tokens in supply.
In January, WeMade said that there would be 245,966,797 tokens in circulation by the end of October this year. However, as of October 25, there were 318,421,502 WEMIX tokens in circulation – meaning an additional 72,454,705 coins have been added to the supply.
WeMade has apologized for what it claims were mainly clerical errors. But DAXA seems to be unsatisfied with this explanation, and eventually decided to delist the token.
Yonhap also pointed out that WEMIX is also listed on foreign exchanges such as Gate.io, with 90% of WEMIX’s trading done through DEXA exchanges.
Angry investors protest WEMIX delisting on the streets of Seoul
This move of delisting has led to angry street protests. A group calling itself the Wemix Crisis Victims Council and consisting of Wemix investors held a rally in front of Upbit’s headquarters in Seoul’s Gangnam district earlier this month.
A spokesperson for the group was quoted as saying:
“The investors of WEMIX who suffered heavy losses due to the hasty decision to delist are suffering a pain worse than death.”
Complaints urging DAXA to “retract” its delisting move have also attracted the attention of regulators.
The media outlet quoted Lee Bok-hyun, head of the Financial Supervisory Service, as saying:
“It will be necessary to see whether DAXA has made its decision in line with fair internal and external standards in order to judge whether these standards are correct.”
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