Wemade Ends Controversy Over Massive WEMIX Sell-Off 'At All Costs'... 20 Million Tokens to Be Burned Today

Jang Hyun-guk, CEO of Wemade (Photo by Wemade)

[Asia Economy Reporter Kang Nahum] Wemade has put its life on the line to end the controversy over the massive sale of WEMIX that arose last month. The plan is to restore investor confidence through WEMIX burning and mandatory disclosure, thereby raising the value of WEMIX once again.

On the 25th, Wemade will burn 20 million WEMIX tokens. Based on the current price (6,150 KRW), this amounts to approximately 123 billion KRW.

The WEMIX tokens are not circulating in the market but are held by Wemade. Wemade is known to own 80% of the total issued tokens (1 billion tokens).

Wemade explained the reason for the burn, stating, "We are striving to contribute to the ever-evolving WEMIX community, and by removing a portion of WEMIX tokens from the reserve supply, we aim to contribute to the growth and development of the WEMIX ecosystem and community."

Industry insiders view this burn as an effort by Wemade to dispel the controversy it caused over the massive token sales. Previously, Wemade sold 108 million WEMIX tokens since November 2020, cashing out 227.1 billion KRW, of which 166.7 billion KRW was reportedly used to acquire SundayToz.

In particular, during the fourth quarter of last year when WEMIX prices surged sharply, Wemade sold WEMIX worth 160.9 billion KRW on the market, drawing significant criticism from investors.

Once nearing 30,000 KRW, the price of WEMIX has since repeatedly declined and currently remains in the 6,000 KRW range.

The price of the coin is the key to the success of P2E games. If the price falls, the value of items also decreases, which could lead to the collapse of the in-game economic system. Wemade’s goal of making WEMIX the 'base currency' of the P2E gaming world inevitably becomes more distant.

Future fundraising efforts may also face difficulties. So far, Wemade has enjoyed considerable benefits by investing in game developers or conducting M&A using funds obtained from selling WEMIX.

This is why Wemade is making every effort to quickly end the 'massive on-market sale controversy' surrounding WEMIX.

Wemade plans to burn 1% of the total issued tokens each time the WEMIX price rises by $10 until it reaches $200. When the target price is reached, a cumulative 20% will have been burned. They also plan to enhance transparency to prevent recurrence of such incidents through mandatory disclosures and other measures.

Wemade CEO Jang Hyun-guk does not attach great significance to this burn. He said, "I do not think burning tokens for short-term price support is appropriate," adding, "This burn is being carried out because we believe that when the ecosystem grows, there should be proper rewards for coin holders."

This content was produced with the assistance of AI translation services.