WEMIX price drops 77% after South Korea crypto exchanges threaten to delist it

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South Korea’s largest crypto exchanges have stated that the WEMIX tokens in circulation are larger than what Wemix had disclosed.

Key learning points

  • South Korea’s largest crypto exchanges said on November 24 that they would end contract support for WEMIX.
  • At the time of writing, the WEMIX token was trading at $0.3578 after falling 77.12% in 24 hours.
  • The exchanges had issued an investment warning on October 27, claiming there was more WEMIX in circulation than Wemix disclosed.
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Alleged false information by Wemix

Bithumb, Upbeat, Coinone, Korbit and Gopax, which are part of a collection of South Korea’s largest cryptocurrency exchanges called the Digital Asset eXchange Alliance (DAXA), announced yesterday (Nov. 24) that they will be removing the WEMIX token. DAXA alleged that Wemix, the company behind the WEMIX token, provided false information in response to an investment warning issued by DAXA in October.

According to DAXA’s announcement, trading in WEMIX will end on December 8, 2022.

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On October 27, DAXA issued an investment alert claiming that there were more WEMIX tokens in circulation than what Wemix disclosed. In response to the allegations, Wemix had promised to work with DAXA to address the concerns.

Wemix response

Immediately after news of the delisting broke, Wemix Communication released a statement claiming it had responded to DAXA’s concerns and corrected a number of issues related to circulation, the team said:

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“The WEMIX team acknowledges or disagrees with the unreasonable decision of the Digital Asset eXchange Alliance (DAXA)…It is crucial to note that the Foundation has not distributed any WEMIX beyond what we have officially so far announced.”

Unfortunately, the market had already reacted to the delisting news and the WEMIX token plummeted by more than 70% within minutes of the news and it is still falling.

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