Wemade's Stock Drops 30% After Korean Exchanges Delists its WeMix Token (Wemade is Behind Mir 4 and other Blockchain Games)

Looks like there's trouble in the metaverse. Wemade, the South Korean gaming company behind numerous play to earn MMOs including Mir 4, saw its stock price plummet 30% today after its Play 2 Earn token 'Wemix' will be delisted from numerous popular South Korean cryptocurrency exchanges on Dec 8th. The 30% plunge in the company's stock price was the maximum amount allowed in a single day, which means the stock will likely fall further when trading resumes on Monday. The plunge erased over $300M in value from the company's market cap and the damage isn't fully done yet.

The value of Wemix collapsed over 75% from $1.55 per token on Nov 24 to $0.38 today on Nov 25. Investors holding Wemix are rushing to sell their tokens before the token is delisted on Dec 8.

The Digital Asset eXchange Association (DAXA), an association made up of 5 major crypto exchanges in South Korea (Upbit, Bithumb, Coinone, Korbit, and Gopax), announced that Wemix will be delisted from all member exchanges. Delisting the Wemix token from these exchanges means that anyone holding Wemix will have fewer places to trade their tokens for other U.S. dollars (in the form of stable coins) or other crypto (Bitcoin / Ethereum). The vast majority of Wemix tokens are traded in these large South Korean exchanges, so this move by DAXA could destroy Wemade's emerging play 2 earn business.

What's the point of playing Wemade's play 2 earn MMORPGs if the currency you earn (Wemix) can't be easily traded for other crypto assets?

DAXA claims they decided to delist Wemix because the supply of Wemix tokens exceeded the initial expected supply that Wemade provided DAXA. Essentially DAXA is accusing Wemade of creating more Wemix tokens than they initially planned. They also further claimed that Wemade provided false information and disclosures.

Wemade disagrees with DAXA and provided a lengthy statement defending their prior disclosures. They claim the circulating supply of Wemix is no greater than the expected supply and that they didn't do anything wrong. Wemade also said they plan to file a lawsuit against DAXA claiming their decision to suspend trading in Wemix on their member exchanges is 'unfair', though I'm not sure if 'unfairness' will hold up in court. Generally crypto exchanges are free to list and delist digital assets at their own discretion.

This isn't normally the kind of news we cover here at mmos.horseracingexpert.net, but Wemade is THE biggest proponent of play to earn blockchain gaming and has over a dozen play to earn games on their Wemix platform. The value of Wemix is directly correlated to the amount of money players can earn playing Wemade's play to earn titles. If Wemade can't get their token listed on a major exchange, it could totally destroy their business model.

Further Reading: Wemix Price on Coinmarket Cap, WeMade Statement, Wemade Stock Price