Wemix Price plunges 60% after large Korean exchanges announce the second delimitation

Wemix, the native cryptocurrency of the South Korean company Wemade, saw its price plunge more than 60% following a devastating announcement of Digital Asset Exchange Alliance (Daxa) that it will be radiated from all the main national exchanges by June 2.

The decision has marked the second time that Wemix has faced radiation in a notoriously prudent cryptographic environment in South Korea.

The delimitation follows a February cyber attack in which more than 8.65 million WEMIX coins, valued at around 9 billion won (approximately $ 6.2 million), were illegally removed from Wemade Play Bridge Vault, a critical component of its web infrastructure.

Daxa judged the violation of the disadvantage explained, and the Wemix Foundation failed to meet the standards of compliance of transparency, disclosure and compensation for key users.

Daxa, which includes five major exchanges of Korean crypto: Upbit, Bithumb, Coinone, Korbit and Gopax, announced that all of Wemix’s commercial support would cease at 3:00 p.m. kST on June 2. The withdrawal feature will remain available until July 2.

This decision was particularly substantial because Korea remains the most important liquidity and trading volume market in Wemix.

Wemix’s price collapsed by almost 60% on the news, going from 1,200 to ($ 0.85) to just over 400 won in a few hours. Wemade shares were affected in the same way, the tasting of 17.45% in a single day to close at 23,650 won.

Retlaiming the decision deepens regulatory and security problems, affects the price of WEMIX

Daxa’s justification for radiation has been firmly rooted in its description of Wemade’s continuous failure to comply with the standards necessary to maintain commercial support.

“Despite the Foundation’s explanatory data, the cause of the violation of security and investor remuneration plans remain clear,” said Daxa.

The Alliance made several criticisms in March and April after the February hack, during which Wemix had already been placed on a warning list.

In the end, however, regulators determined that neither the incident nor the risks for investors had been treated enough.

Wemade’s response was to offer a tokens buy -back initiative to absorb Wemix and burn (cremating) tokens to restore market confidence.

Although this plan was made public, Daxa was not convinced of its efficiency or sincerity.

February’s hacking, which affected the safe Play Bridge used for transfers of transversal tokens, underlined the Vulnerabilities of Wemade infrastructure.

Despite the immediate disclosure of the company, Daxa reported a timeless and transparent lack of communication.

The safety laps was particularly disturbing because Wemix underlies several games based on blockchain and DEFI applications in the Wemade ecosystem.

This is not the first time that the company must resist such storms. In 2022, Wemix was initially struck off Korean exchanges, to be restored the following year.

The fact that the previous cancellation was also due to concerns about the disclosure of the tokens.

A strategic setback with global implications

The interior impact of the delimitation cannot be overestimated. With Korean exchanges responsible for most of the Wemix negotiation volume, loss of liquidity and access to investors on its internal market is essential.

Even if Wemix remains negotiable on certain platforms abroad such as Bitget and Bybit, the negotiation volumes on these scholarships are tiny compared to the concentrated cryptographic cryptographic ecosystem.

In addition, rehabilitation of internal exchanges is now prohibited for at least one year under current regulatory directives.

Wemade has promised to continue to extend its blockchain initiatives worldwide, referring to new exchanges of exchanges outside Korea to mitigate the impact of radiation.

However, without robust domestic support and always recovering from reputation damage, these efforts are faced with upright challenges.

With the key token of its ecosystem withdrawn from its strongest market, the company will have to address technical or regulatory challenges and a fundamental crisis of confidence between investors and users.

The future of Wemade’s blockchain’s blockchain’s ambitions could now depend on how it restores faith after its second major implementation.

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