A South Korean court has upheld local exchanges’ decision to delist Wemade’s Wemix (WEMIX) tokens, dismissing Wemade’s petition to cancel the delisting.
The Seoul Central District Court ruled on Dec. 7 justifying the Digital Asset eXchange Alliance’s (DAXA) decision to withdraw WEMIX from major South Korean exchangesThe Korea Herald reported Thursday.
The DAXA, a cryptocurrency exchange group that represents the biggest South Korean companies such as Upbit, Bithumb, Coinone, Korbit and Gopax, said that Wemade had not correctly disclosed the number of tokens in circulation.
The court has apparently supported the DAXA’s position, emphasizing the importance of transparent reporting on token distribution, stating:
“Crypto assets have no absolute regulator or means to determine their price like the stock market […] Therefore, the distribution number is crucial because the price is decided as a result of the balance between supply and demand.”
In response to the latest ruling, Wemade argued that the company will continue the legal battle against DAXA and appeal the court order.
“We will continue our efforts to demonstrate the unfairness of DAXA’s decision,” the company said, adding that it also plans to file a lawsuit. Also, the company plans to submit a complaint to the Korea Fair Trade Commission, which is a major regulatory authority for economic competition in the country.
The court ruling came shortly after Wemade filed an injunction petition on Nov. 28, after DAXA member exchanges first delisted WEMIX from the exchange in late November.
Founded in 2000, Wemade is a South Korean game development company, backed by major global technology companies including Microsoft. The firm launched its gaming-related Wemix blockchain platform alongside its namesake token in late 2019.
The Wemix cryptocurrency has been plummeting amid delisting news since late November, seeing even more red amid the latest news. The token has lost around 60% of its value in the last 24 hours at the time of writing, according to data from CoinGecko. WEMIX has also lost more than 90% in the last 30 days.
According to some reports, Wemix is not the only blockchain platform that could be in trouble due to DAXA considerations.
On Dec. 8, the Upbit exchange posted an announcement claiming that DAXA issued a warning regarding the Waves (WAVES) cryptocurrency. In order to protect investors, DAXA may jointly take measures such as investment caution or even termination of transaction support, the company said.
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