WEMIX Crashes 60% as Korean Exchanges Drop the Ax—Again

Another day, another crypto bloodbath—this time courtesy of South Korea’s exchange giants. WEMIX holders watched in horror as the token nosedived 60% after major platforms announced their second delisting in under three years. So much for ’decentralized’ immunity to centralized power plays.

Behind the carnage: exchanges citing ’failure to meet listing standards.’ Translation? Either the team flubbed compliance (again), or someone’s making an example of them. Either way, traders got the usual lesson—when exchanges talk ’standards,’ grab your wallet and run.

Bonus finance cynicism: At least the exchanges waited until after lunch to drop the news. Gotta let those institutional boys exit first, right?

WEMIX’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.

WEMIX Buyback Execution

To swiftly recover from the impact of the WEMIX PLAY Bridge incident and restore the stability of the service and ecosystem, the #buyback execution begins today.

The buyback method and the exchanges where the buyback was conducted will be disclosed… pic.twitter.com/KU6XCWYz8U

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.

Statement for the WEMIX Community

In response to DAXA’s recent decision to end support for #WEMIX transactions,
we sincerely apologize to our community.

We remain firmly committed to the integrity, growth, and global future of WEMIX.

Official announcement here :… pic.twitter.com/K28EWf94jU

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.