South Korean gaming giant WeMade, went against the country’s biggest crypto exchanges to fight for its native token. The company was trying to save WEMIX from delisting but lost the legal battle.
WeMade Lost to DAXA
The Digital Asset Association (DAXA) issued an investment warning to WeMade in October. DAXA Group is formed of four major crypto exchanges in South Korea.
The names of these major crypto exchanges are Coinone, Upbit, Bithumb, and Korbit.
According to the Yonhap reports, WeMade filed a legal complaint against the above-mentioned cryptocurrency exchanges.
The complaint was filed at a branch of the Seoul Civil Court. However, the complaint was dismissed by the civil court on December 8.
Exchanges are ready to delist WEMIX
Exchanges will start delisting WEMIX from their platforms starting January of 2023.
On December 8, the ruling observed the value of the WEMIX coin dive by almost 50%. According to the reports, the major chunk of the downtrend of the coin was seen on Upbit.
According to data from CoinGecko, a 75% drop was seen during the last 24 hours at the time of writing.
In the past 24 hours, CoinGecko data showed that roughly $189 million worth of WEMIX coins had been traded on Upbit
Who are DAXA?
DAXA was launched in May 2022 due to the collapse of Terra Network coins. There was a lot of criticism by the regulators in South Korea over the local crypto exchanges after the Terra crash.
Therefore, four major exchanges in South Korea decided to form a committee to make unanimous decisions pertaining to cryptocurrencies.
Exchanges Are Concerned about the WEMIX Supply
WEMIX coin supports many blockchain gaming operations offered by WeMade.
This is the reason why WeMade was optimistic about its coin. However, the exchanges have expressed their concerns about the supply volume of the tokens.
WeMade had communicated to the exchanges that on October 25, 245,996,797 WEMIX tokens circulating through the system.
However, there were 318,421,502 WEMIX tokens in circulation on October 25. Its means there have been added 72,454,705 additional coins to the supply.
WeMade apologized, adding that these were technical errors that should be ignored but DAXA delisted the WEMIX coin because it was not satisfied with their explanation.
WeMade’s token is also listed on Gate.io, where 90% of WEMIX is traded through DAXA exchanges, according to Yonhap reports.
WEMIX Investors Protest in Seoul.
A group called the Crisis Victims Council and the WEMIX investors have started street protests against the delisting of tokens from the exchanges.
Demonstrators protested in front of Upbit’s headquarters, which is located in the Gangnam district of Seoul.
The group’s spokesperson revealed that investors have suffered huge losses due to hasty decisions taken by DAXA exchanges in which DAXA delisted the WEMIX token.
While speaking, they further said that due to this decision taken by DAXA, the investors are suffering.
Victims have poured in complaints that DAXA should reverse its decision to delist the token, which has drawn the attention of regulators.
There is a high possibility that the regulators may intervene to get to the bottom of the matter.