Wemix, a cryptocurrency developed by the South Korean company Wemade, experienced a sharp price decline of up to 60% following the announcement of its removal from major South Korean exchanges.
Reasons for Wemix's Removal
Exchanges justified their decision by significant trust and transparency issues surrounding the Wemix project. The Digital Asset Exchange Alliance (DAXA) highlighted that the Wemix Foundation failed to address concerns that initially placed the altcoin on the 'investment warning' list.
Impact of the Play Bridge Hack
A notable setback for Wemix was the $6.2 million hack on the Play Bridge protocol in February, revealed to the public four days after it occurred. This incident resulted in a 40% loss in value for the altcoin, underscoring ongoing vulnerabilities.
Wemade's Response to the Crisis
Following these developments, Wemade issued an apology to its community, acknowledging the removal of trading support from South Korean exchanges. The company confirmed its commitment to the project and plans to continue its buyback program to stabilize prices.
The situation surrounding Wemix highlights the critical importance of trust and transparency in the cryptocurrency landscape. The delisting and subsequent price drop reflect significant challenges for the project and its community.
