Wemade shares plunge after court approves delisting of its Wemix coin

Wemade building [Courtesy of Wemade]

Wemix, the cryptocurrency developed by game company Wemade, was delisted from four major local coin exchanges at 3 pm on Thursday following a court decision that sided with crypto exchanges’ delisting of Wemix tokens. Its price plunged to 209 won ($0.16) on Upbit, down 99.29 percent from its peak of 29,490 won on Nov. 22 last year.

The coin exchanges, including Upbit, Bithumb, Coinone and Korbit, decided to delist Wemix coins, arguing that Wemix committed a grave violation with false disclosure of its coin circulation plan. Wemix took the matter to court, calling for a cancelation of the delisting.

Upon the court decision upholding the delisting, Wemade shares nosedived by 20.29 percent to close Thursday at 30,050 won. Last year, its share prices moved between 20,000 and 30,000. Although the stock traded around 270,000 won last year, it lost 84 percent of its value this year.

Wemade is one of the frontrunners in the race for the play-to-win (P2E) games, where users earn real-world money from the in-game items they gain through blockchain technologies. It vowed to include 100 games in the Wemix ecosystem by the first quarter of 2023, indicating that at least 100 games will use Wemade’s blockchain technologies. The firm has pursued blockchain technologies as a breakthrough in the saturated MMORPG market. However, the delisting of Wemix will put a brake on its plan to expand its P2E Business, as game publishers will be reluctant to join.

Wemade shares rose 8.3 percent to 32,550 won as of 2:56 p.m. trading Friday.