Kim Nam-guk Incident Included... Troubled 'Wemix' Faces Clouded Re-listing on Upbit and Bithumb

Delisting of WEMIX at Daxar Level... Relisting on Coinone
Relisting Uncertain on Major Exchanges Like Upbit and Bithumb Due to Kim Nam-guk Incident

The virtual asset WEMIX is once again drawing attention due to the 'coin investment suspicion' involving Representative Kim Nam-guk, who left the Democratic Party of Korea. WEMIX, issued by Wemade, was suspended from trading (delisted) last November due to issues with issuance and circulation volume. It was later relisted on Coinone and is seeking relisting opportunities on major exchanges such as Upbit and Bithumb, but has become embroiled in various suspicions amid the current situation. Within the virtual asset industry, there are claims that relisting has become difficult for the time being after being delisted from major KRW market exchanges.

Exterior view of Wemade headquarters, the developer of the virtual asset WEMIX. Photo by Yonhap News

According to the industry on the 19th, WEMIX has become the center of controversy with allegations of legislative lobbying after news spread that Representative Kim held a large amount of the coin. There are claims that he may have received coins for free from the gaming industry or obtained undisclosed information and proposed bills representing industry interests. The Korea Game Society mentioned lobbying suspicions, stating, "There have been rampant rumors for several years that P2E (play-to-earn) companies are lobbying the National Assembly." They also called for a full investigation of lawmakers and their aides.

In response, Wemade filed a complaint with the Seoul Metropolitan Police Agency against the Korea Game Society and Chairman Wi Jeong-hyun for defamation by spreading false information. They also emphasized, "We will respond strongly under a zero-tolerance policy against malicious rumors and groundless speculation."

Furthermore, as the prosecution investigating the incident decided to look into the issuance and circulation volume of WEMIX coins, suspicions regarding issuance and circulation volume have been reexamined. Over 20 WEMIX investors filed a complaint with the prosecution on the 11th, accusing Wemade CEO Jang Hyun-guk of causing significant losses by deceiving investors with intentional false information about circulation volume during the issuance and sale of WEMIX. The Seoul Southern District Prosecutors' Office assigned the case to the Criminal Division 6 (Chief Prosecutor Lee Joon-dong), which is investigating Representative Kim's coin suspicions.

WEMIX was previously suspended from trading (delisted) last November due to issuance and circulation volume issues. The Digital Asset Exchange Joint Council (DAXA), which includes Upbit, Bithumb, Coinone, Korbit, and GOPAX, decided on delisting due to serious circulation volume violations, inadequate or incorrect information provision, errors in submitted materials during the explanation period, and damage to trust.

Following Representative Kim's coin investment suspicion, WEMIX's price has been declining. According to data from CoinMarketCap, a global virtual asset market tracking site, WEMIX's price, which was in the $1.2 range earlier this month before the incident, dropped to the $0.8 range as of 5 p.m. on the 18th. The average daily trading volume increased compared to the previous month but sharply decreased compared to February this year. From the 1st to the 17th of this month, the average daily trading volume was $7.44 million (approximately 9.9 billion KRW), a 14.99% increase from the previous month. However, it plunged 47.16% compared to $14.08 million (approximately 18.8 billion KRW) in February this year.

Industry insiders say this incident could be an obstacle to WEMIX's relisting on KRW market exchanges other than Coinone. While other exchanges besides Coinone have not announced their stance on relisting, Representative Kim's coin investment suspicion could be a burden.

Previously, although DAXA decided to delist WEMIX, it was relisted on Coinone in February this year, about two months later, sparking controversy. In response, DAXA released common guidelines for trading support reviews. In particular, regarding the resumption of trading support for virtual assets, it mandated that if a certain period has not passed since the trading support ended, or if the reasons for the trading support termination have not been resolved even after a certain period, these factors must be compulsorily considered during the trading support review.

An industry official said, "Due to the relisting guidelines, we thought it would be difficult for WEMIX to be listed again soon, but with this incident added, plans for listing on major virtual asset exchanges seem likely to be delayed." He added, "When Coinone relisted WEMIX, there were many criticisms, and although not mandatory, there was a call for better adherence to DAXA's guidelines as a form of self-regulation." Another official also said, "From the exchange's perspective, legal issues cannot be ignored when considering WEMIX's relisting."

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