Here’s Why Five South Korean Exchanges are Delisting WEMIX Token

WEMIX, the native cryptocurrency of the Wemade ecosystem, has been delisted from major local crypto exchanges. Notably, Upbit, Bithumb, Coinone, Korbit, and Gopax, representing South Korea’s entire crypto market, announced the decision collectively through the Digital Asset Exchange Association (DAXA).

This move follows a $6.2 million exploit in February, which the Wemix Foundation initially failed to disclose promptly. Following the announcement, WEMIX plummeted 60% to $0.307 from an April 30 high of $0.76.

Notably, trading on these exchanges will cease on June 2, with token withdrawals ending a month after. This drastic measure underscores the exchanges’ concerns about the Wemix Foundation’s ability to address security issues.

At press time, data from CoinGecko shows that the token has recovered considerably to trade at $0.47.

Understanding WEMIX and Its Challenges

WEMIX is the native cryptocurrency of Wemade’s ecosystem, powering the WEMIX3.0 blockchain platform. It facilitates transactions, staking, and other activities within the platform, aiming to create a stable and sustainable ecosystem.

Its tokenomics feature a capped total supply of 540 million tokens and a “block minting halving” mechanism to reduce token issuance over time. This design supports a stable ecosystem, enabling initiatives like WEMIX Play and Wepublic to enhance gaming and promote transparency.

Meanwhile, the ecosystem’s troubles began earlier this year when centralized exchanges placed it on an investment caution list due to a February 8 $6.12 million exploit. The delay in alerting users to the hack, justified as a measure to “prevent market panic,” further raised concerns.

DAXA’s decision to delist WEMIX suggests that the foundation’s response was insufficient, and the token no longer meets the criteria for transaction support on these platforms. Despite the delisting, the Wemix team remains committed to the project’s growth.

In a statement, they apologized to the community and pledged to dedicate resources to overcoming the impact of the delisting. The team also plans to continue buying back 10 billion Korean won ($7.1 million) worth of WEMIX tokens to restore market value, signaling their determination to move forward despite the setback.

A Pattern of Concern

WEMIX’s delisting is not an isolated incident. This remarkably marks the second time the token has faced removal from DAXA member exchanges. In December 2022, WEMIX was delisted due to discrepancies in its circulating token supply, highlighting ongoing concerns about transparency and security.

This pattern has sparked mixed reactions about the project’s ability to maintain trust and stability in the market. Meanwhile, the recent exploit and delisting have further drained investors’ confidence in WEMIX.

Additionally, the $6.2 million loss due to the hack may have a lasting impact on the token’s value and market perception. While the Wemix Foundation has taken steps to address some concerns, the repeated issues suggest deeper problems beyond the surface claims.

WEMIX Delisting Impacts Wemade’s Stock Performance

Notably, the impact of the WEMIX delisting extends beyond the token’s price. Data from Google Finance shows Wemade’s stock has also suffered considerably, closing down 17.45% on the day. The company’s year-to-date performance has been negative, with a 32.1% decline.

As WEMIX navigates this challenging period, the focus will be on how the WEMIX team responds to the delisting and works to restore market confidence. Their ability to address security concerns and maintain transparency will be key to the token’s future success and stability in the market.

DAXA’s Setting Standards for Crypto Security

The DAXA’s collective decision emphasizes the importance of security and transparency in cryptocurrency projects. By delisting WEMIX, these major exchanges are sending a strong message about the need for projects to prioritize user protection and maintain high standards.

This move may prompt other projects to reevaluate their security measures and disclosure practices. Meanwhile, the WEMIX team’s action regarding the delisting will be crucial in determining the project’s future.

Their commitment to buying back tokens and supporting the ecosystem may help stabilize the market. However, regaining individual trust will require sustained efforts to address the underlying issues that led to the delisting.

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