WEMIX, the native cryptocurrency of South Korean gaming firm Wemade, saw its price plunge over 60% following a devastating announcement from the Digital Asset eXchange Alliance (DAXA) that it will be delisted from all major domestic exchanges by June 2.
The decision marks the second time WEMIX has faced delisting within South Korea’s notoriously cautious crypto environment.
The delisting follows a February cyberattack in which more than 8.65 million WEMIX coins, valued at around 9 billion won (approximately $6.2 million), were illicitly withdrawn from Wemade’s Play Bridge Vault, a critical component of its Web3 infrastructure.
DAXA deemed the breach inadequately explained, and the WEMIX Foundation failed to satisfy key transparency, disclosure, and user compensation compliance standards.
DAXA, which comprises five major Korean crypto exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax, announced that all trading support for WEMIX will cease at 3:00 PM KST on June 2. Withdrawal functionality will remain available until July 2.
The move was particularly consequential because Korea remains WEMIX’s most significant liquidity and trading volume market.
Source: CryptonewsWEMIX’s price collapsed nearly 60% on the news, falling from 1,200 won ($0.85) to just over 400 won within hours. Shares of Wemade were similarly affected, tumbling 17.45% in a single day to close at 23,650 won.
Delisting Decision Deepens Regulatory and Security Woes, Affects WEMIX Price
DAXA’s rationale for the delisting was firmly rooted in its description of Wemade’s ongoing failure to meet the standards necessary for maintaining trading support.
“Despite the foundation’s explanatory data, the cause of the security breach and investor compensation plans remain unclear,” DAXA stated.
The alliance conducted multiple reviews in March and April following the February hack, during which WEMIX had already been placed on a warning list.
Ultimately, however, the regulators determined that neither the incident nor the risks to investors had been sufficiently addressed.
Wemade’s response was to propose a token buyback initiative to absorb circulating WEMIX and burn (incinerate) the tokens to restore market trust.
While this plan was made public, DAXA was unconvinced of its effectiveness or sincerity.
The February hack, which affected the Play Bridge Vault used for cross-chain token transfers, highlighted vulnerabilities in Wemade’s infrastructure.
Despite immediate disclosures by the company, DAXA flagged a lack of timely and transparent communication.
The security lapse was particularly troubling because WEMIX underpins multiple blockchain-based games and DeFi applications within Wemade’s ecosystem.
This is not the first time the company has had to weather such storms. In 2022, WEMIX was initially delisted from Korean exchanges, only to be reinstated the following year.
That prior delisting was also due to concerns over token supply disclosures.
A Strategic Setback With Global Implications
The delisting’s domestic impact cannot be overstated. With Korean exchanges responsible for most of WEMIX’s trading volume, losing liquidity and investor access in its home market is critical.
Even though WEMIX remains tradable on certain overseas platforms like Bitget and Bybit, trading volumes on those exchanges are minuscule compared to South Korea’s concentrated crypto ecosystem.
Moreover, re-listing on domestic exchanges is now barred for at least a year under current regulatory guidelines.
Wemade has vowed to continue expanding its blockchain initiatives globally, hinting at new exchange listings outside of Korea to mitigate the impact of the delisting.
However, without robust domestic support and still recovering from reputational damage, those efforts face uphill challenges.
With its ecosystem’s key token removed from its strongest market, the company will have to navigate technical or regulatory challenges and a fundamental crisis of trust among investors and users alike.
The future of Wemade’s blockchain ambitions may now hinge on how it restores faith after its second major delisting.
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