A court in South Korea is expected to make a decision next week on Wemade’s injunction filed against four local crypto exchanges that delisted its native WEMIX token last month. If ruled in Wemade’s favor, the injunction could cancel the delisting of the WEMIX token, which has surged over 75% in the past 24 hours.
Court to Finalize Decision on WEMIX Delisting on Dec. 7
The Seoul Central District Court is set to make a final decision on Dec. 7 on an injunction filed by a blockchain gaming firm Wemade against four major local crypto exchanges for delisting its WEMIX native token in November. The exchanges in question include Korbit, Bithumb, Coinone, and Upbit, one of the crypto exchanges that was raided earlier this year after the LUNA crash.
If the court approves Wemade’s injunction filings, the blockchain game developer could nullify the planned delisting of WEMIX. The crypto exchanges announced the delisting on Nov. 24, citing false information regarding the token’s circulation numbers.
The move was announced by Digital Asset eXchange Alliance (DAXA), an organization formed by South Korea’s top crypto exchanges. DAXA argued that Wemade provided misleading information about WEMIX through DART disclosures, causing confusion among investors.
Microsoft-backed Wemade told Upbit there were roughly 245 million WEMIX tokens in circulation in January 2022. However, the actual number of tokens in circulation until Oct. 25 exceeded that figure by as much as 72 million.
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South Korean Financial Authorities Investigating the Matter
Last week, Wemade CEO Henry Chang held an online press conference where he condemned Upbit, saying the crypto exchange abused its power when it decided to delist WEMIX. Chang said his firm will file a complaint against the crypto bourses with the Fair Trade Commission (KFTC), a South Korean regulator responsible for economic competition.
Other financial authorities have also decided to look into the case including the Financial Supervisory Service (FSS). FSS said it will “look into the matter from an institutional perspective to figure out how to bring out an improvement in this situation, as both sides’ positions are starkly conflicting with each other.”
The WEMIX token has plummeted sharply after the delisting announcement, losing over 70% of its value in just several hours. However, the token has recovered some of its losses, rising more than 20% in the past 24 hours.
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About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.