Microsoft-backed video game developer Wemade plans to further continue the legal battle against South Korea’s largest crypto exchanges.
Wemade’s request to have its Wemix (WEMIX) tokens delisted was denied by a South Korean court, which backed the local exchanges’ decision. The Digital Asset eXchange Alliance (DAXA) decision to delist WEMIX from significant South Korean exchanges was upheld by the Seoul Central District Court on December 7, according to The Korea Herald on Thursday.
The DAXA, a group of cryptocurrency exchanges that includes South Korea’s biggest companies like Upbit, Bithumb, Coinone, Korbit, and Gopax, claimed that Wemade had neglected to disclose the number of tokens in circulation in a proper manner.
According to reports, the court agreed with the DAXA’s position and emphasized the value of transparent reporting of token distribution, saying:
“Crypto assets have no regulator or an absolute means of determining 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 firm will continue the legal battle against DAXA and will appeal the court’s order. “We will continue to make efforts to prove the injustice of DAXA’s decision,” the firm reportedly said, adding that it also plans to file a suit.
The business also intends to file a complaint with the Korea Fair Trade Commission, a significant national regulator of economic competition. The court’s decision was made shortly after Wemade, who had delisted WEMIX from DAXA member exchanges in late November, petitioned for a preliminary injunction on November 28.
Wemade is a South Korean video game developer that was established in 2000 and is supported by Microsoft and other well-known international tech giants. In late 2019, the company unveiled the Wemix blockchain platform for gaming together with the corresponding coin.
Since late November, the delisting news has been driving down the value of the Wemix cryptocurrency, and the most recent news has only made things worse. At the time this article was written, data from CoinGecko showed that the token had lost about 60% of its value over the previous 24 hours. Over the previous 30 days, WEMIX has decreased by more than 90% as well.
Wemix is not the only blockchain platform that might be in trouble as a result of DAXA’s considerations, according to some reports. The Waves (WAVES) cryptocurrency was allegedly the subject of a warning from DAXA on December 8th, according to a post on Upbit exchange. According to the company, DAXA may jointly take steps to protect investors, such as exercising caution when making investments or even stopping transaction support.