Microsoft-Backed WEMIX Token Delisted from S.Korean Exchanges

South Korea’s top 5 cryptocurrency exchanges announced the delisting of the gamefi token WEMIX on Thursday. The move comes after WEMIX provided false information, causing confusion among investors, according to local reports.

WEMIX Token Down Over 60% After Being Delisted From Top 5 S. Korean Exchanges

Digital Asset eXchange Alliance (DAXA), an organization formed by South Korea’s leading 5 exchanges Upbit, Bithumb, Coinone, Korbit, and Gopax, said it will delist the game token WEMIX, accusing it of providing false information. The decision comes just a few weeks after Microsoft invested $14.8 million in WEMADE, a blockchain gaming firm behind the WEMIX token.

DAXA said in the announcement that WEMIX provided false information through DART disclosures. The misleading information created confusion among investors, making it difficult to identify and manage important information related to the project, DAXA added.

The crypto exchanges’ transaction support for WEMIX will be terminated at 3 pm on Dec. 8, it said in the announcement. The reports sent the WEMIX token plummeting over 60% on each of the five major exchanges.

But the decision should not come as a surprise given that four of five S. Korean crypto exchanges added the token to the “investment warning” list in October, citing false information regarding circulation numbers. The WEMIX said there were around 245 million tokens in circulation in January, while the actual figure exceeded the estimates by roughly 72 million, WEMADE told Upbit, a crypto exchange that was raided earlier this year after the LUNA crash.

DAXA then initiated a 2-week investigation into the matter and warned it could end its collaboration with WEMIX if the matter remains unresolved after the probe. In response, WEMADE said it made a mistake by leaving out a portion of WEMIX tokens used to supply liquidity for its blockchain mainnet, as well as for deposits in making loans and managing the ecosystem.

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Microsoft Invested $14.8 million in WEMIX

Earlier in November, WEMADE raised $46 million in a funding round from Shinhan Asset Management, Kiwoom Securities, and tech giant Microsoft, which contributed $14.8 million. Shinhan and Kiwoom invested $21.2 million and $10.5 million, respectively, according to regulatory filings.

“This is a meaningful investment by reputable financial and strategic investors with proven track records. Wemade and Wemix will continue to exert efforts to attract more capital and actively invest to build the global digital economy platform.”

– Henry Chang, CEO of WEMADE.

Developed by WEMADE’s subsidiary, WEMIX is a blockchain-powered global gaming platform that provides users with wallets and a marketplace for digital assets. In October, the platform rolled out WEMIX stablecoin, which is pegged to the US dollar but completely backed in USDC.

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