Wemix, a cryptocurrency issued by Wemade, has been delisted from five Korean cryptocurrency exchanges, the companies announced Thursday night.
Upbit, Bithumb, Coinone, Korbit, and Gopax, the five exchanges, will stop trading Wemix coins on December 8. Owners will be able to withdraw their funds for a month following the end of trading.
The decision comes a month after the Digital Asset eXchange Alliance (DAXA), a trade group representing the five exchanges, issued an Investment Warning to Wemix on Oct. 27 due to discrepancies between the number of tokens that were to be distributed according to company disclosures and the actual number outstanding.
The company stated in January that it expects 245,966,797 Wemix tokens to be available on Oct. 31, but on Oct. 25, there were 318,421,502 Wemix tokens, a difference of 72,454,705.
Wemix fell from 2,200 won ($1.7) on Thursday to 800 won early Friday. Wemix coins have lost approximately 95% of their value since November of last year. Upbit shared:
“There were numerous errors found in the files they handed in and they repeatedly changed the contents of the files even after submission. A rare situation has occurred where our level of trust in management capability has plummeted to a point where it cannot recover.”
In a press conference on November 2, Wemade CEO Chang Hyun-guk assured investors that the possibility of delisting is "almost zero."
The difference, according to Chang, occurred because the company failed to immediately report additional tokens to the market, as it planned to do in a quarterly report scheduled for the end of the year.
According to local news outlet Block Media, the comment had a negative impact on DAXA officials, leading to Thursday's decision. Block Media was told by a DAXA official that:
“Chang Hyuk-guk’s assurance that ‘Wemix will not be delisted’ had a negative effect.”
Wemix, a game publisher, has lost roughly 85 percent of its value since peaking in November 2021. The stock closed at 56,200 won on Thursday and opened at 39,400 won on Friday morning, down 30% from the previous day.
