South Korea-based blockchain game developer Wemade is working on a fix for its cryptocurrency WEMIX after four major crypto exchanges in the country added the token to an “investment warning” list for inaccurately reporting circulation numbers.
See related article: South Korea’s MIR4 maker Wemade launches stablecoin
Fast facts
- South Korea’s Digital Asset eXchange Association (DAXA) on Oct. 27 designated the WEMIX token as investment of caution after it discovered that the token’s circulation information was inaccurately delivered, according to Upbit’s notice.
- The WEMIX issuer provided an estimated circulation of 245 million tokens to Upbit in January. But actual WEMIX tokens circulated until Oct. 25 exceeded the estimate by about 72 million.
- DAXA, a joint crypto market monitoring organization, has begun a two-week examination into the matter. Exchanges might end their collaboration with the token if the warning remains unresolved at the end of the two weeks.
- Wemade explained that it made a mistake by excluding issuance of WEMIX tokens used to supply liquidity for its blockchain mainnet, for deposits in making loans and expanding and managing the ecosystem, adding that they did not think tokens not circulated in the market should be included in the estimate.
- Wemade will strengthen its disclosure system to publish information prior to increasing circulation, and will entrust its token holdings to a third-party custodian for stronger predictability and transparency, the company announced in its notice.
- WEMIX is used throughout its blockchain ecosystem especially in Wemade’s global gaming platform. Its price has declined by about 30% since the four exchanges issued the investment warning, according to CoinMarketCap.
See related article: A 100% reserve is a must for any stablecoin: Wemade CEO