According to local media sites (1), Wemade Co., Ltd., a renowned blockchain game developer in South Korea, recently filed injunctions against four regional cryptocurrency exchanges for their announcement to delist Wemade's WEMIX coin.
The injunction
Wemade filed the injunction to overturn the delisting of WEMIX (2) from the four biggest and fully authorized cryptocurrency exchanges in South Korea: Upbit, Bithumb, Coinone, and Korbit. The four exchanges declared on November 24 that they would remove Wemade's WEMIX coin from their lists on December 8.
The delisting announcement had a significant negative impact on the blockchain game developer, with the price of the WEMIX cryptocurrency dropping by over 70% the same day and the shares of Wemade and its affiliates falling by almost 30% when the stock market opened the next day. The decreases had repercussions, for according to Naver Stock, Com2uS Holdings' stock fell 6.27%, DragonFly's (3) stock dropped 8.56%, and Netmarble's stock dropped 3.39% on November 25.
The drop in price
After exchanges announced the delisting of the WEMIX token, S. Korean Wemade's stock dropped 30%; the CEO blamed the Upbit exchange. WEMIX was last month included in their "investment warning" list by the exchanges, who collectively make up the local cryptocurrency market monitoring body DAXA, for providing false circulation data. In January, Upbit received an estimate from the WEMIX issuer that there were approximately 245 million tokens in circulation. The number of WEMIX tokens in circulation as of October 25 exceeded the projection by around 72 million.
Wemade CEO Henry Chang yelled in a last-minute online press conference on November 25 (4). Upbit was accused of misusing its authority when it delisted WEMIX, blaming the cryptocurrency exchange for Wemade's "unfair treatment." Chang continued by claiming that Wemade was the victim of an abuse of power by Upbit, the biggest exchange in Korea, which ignored the company's repeated demands for exchange policies or norms regarding token circulation.
The current issues faced
Token circulation was not the only issue that resulted in the delisting statement, according to Upbit, who told local media sources that DAXA had conveyed the specifics of the circulation problems to Wemade.
Forkast's request for more remarks has not received a response from Upbit as of yet.Wemade is also ready to lodge a complaint with the Fair Trade Commission on the trades (KFTC). "As a group, we shall prepare with everything." During the online press conference, Chang stated that pursuing criminal litigation was a "possibility."The 2000-founded company Wemade has successfully integrated blockchain technology into its catalog of video games, including the play-to-earn MMORPG MIR4 Global, which saw over 1.4 million concurrent users in 2017.
The gaming corporation is still growing its blockchain ecosystem; the most recent development was the introduction on Tuesday of the non-fungible token (NFT) market on its Web3 platform NILE, which stands for "NFT is Life Evolution." Due to website maintenance, according to NILE, the market is presently inaccessible. Last month, the business unveiled its most recent blockchain mainnet, WEMIX 3.0, and a stablecoin and decentralized finance service.
