Wemix, an altcoin developed by South Korean Web3 gaming company Wemade, saw a sharp drop in value, plummeting over 60% following an announcement of its removal from major South Korean cryptocurrency exchanges. The coin’s price fell from $0.7225 to $0.2757 within a mere 15 minutes, spurring widespread panic selling. Despite a modest recovery to $0.36 according to CoinMarketCap, the token remained roughly 50% down from the previous day. The delisting, led by the Digital Asset Exchange Alliance (DAXA), included prominent platforms like Upbit, Bithumb, Coinone, Korbit, and Gopax, with trading and withdrawal services set to end by June 2 and July 2 respectively.
What Led Exchanges to Drop Wemix?
Exchanges justified their decision by pointing to significant trust and transparency issues surrounding the Wemix project. DAXA highlighted that the Wemix Foundation failed to address concerns that initially placed the altcoin on the “investment warning” list. The group’s choice was heavily influenced by perceived project credibility flaws, inconsistent public statements, and identified security vulnerabilities.
A notable setback for Wemix was the $6.2 million hack on the Play Bridge protocol in February, revealed to the public four days after it occurred. The foundation cited a desire to avert panic as the reason for the delayed disclosure. Nevertheless, this incident resulted in a 40% loss in value for the altcoin, underscoring ongoing vulnerabilities that justify the withdrawal of trading support to protect investors.
How is Wemade Responding to the Challenge?
Following these developments, Wemade issued an apology to its community, acknowledging the removal of trading support from South Korean exchanges. Despite the setback, the company expressed unwavering commitment to the project and plans to expand its ecosystem. The statement emphasized utilizing all available resources to swiftly counteract the impact of the decision.
The company also confirmed that its previously announced buyback program, worth 10 billion won ($7.1 million), would go ahead. The initiative seeks to curtail market supply and bolster the coin’s price, although its effectiveness remains uncertain. Investor sentiment appears hesitant amidst the unfolding situation.
In light of these challenges, Wemade’s shares on the stock market also took a hit, suffering a 17.45% decline and contributing to a 32% loss since the year’s onset.
* The delisting caused Wemix’s price to fall significantly in a short time frame.
* The Play Bridge protocol hack contributed to ongoing trust issues for the project.
* Communication from DAXA pointed to transparency and security concerns leading to the delisting.
* Despite setbacks, Wemade remains focused on project expansion and has implemented a buyback plan to stabilize prices.
Trading in Wemix remains under scrutiny as DAXA’s announcement continues to reverberate through both markets and public perception. The rapid decline in value highlights the critical importance of trust and transparency in the cryptocurrency landscape, a lesson unmistakably underscored by this turbulent episode.
