Key takeaways:
- Wemix.fi declared on July 30 that its lending and borrowing operations would be discontinued.
- Wemix underwent a fork following Jang’s resignation, which resulted in the creation of the Wemix Pay service and a second game token, along with a reduced Wemix issuance.
Wemix[.]fi, the decentralized financial platform for Wemix crypto, declared on July 30 that its lending and borrowing operations would be discontinued. The tale of the crypto that powers South Korean blockchain gaming maker Wemade has just taken a new turn.
The platform’s USD-pegged stablecoin, WEMIX$, was suspended, according to Wemix, and this was due to “issues related to the liquidation of WEMIX$.” The message stated that a notice of the services’ return will be forthcoming. About the liquidation of its stablecoin, Wemix.fi provided no further details.
The services were suspended one day after it was revealed that Jang Hyun-kook, the previous CEO of Wemade, had sold his firm shares, which caused the price of Wemix (WEMIX) to drop to $0.94, the lowest level of the year.
When Jang left in March, the value of the crypto also declined. After the crypto was linked to a political crisis last year, Jang was reportedly taking action to lessen the company’s legal exposure.
Wemix underwent a fork following Jang’s resignation, which resulted in the creation of the Wemix Pay service and a second game token, along with a reduced Wemix issuance. Additionally, a brand-new governance system was unveiled. But such developments didn’t stop the Wemix price drop.
Wemix’s past has been turbulent. In May 2022, Wemade debuted its stablecoin along with the mainnet launch. The entire collateral was in USD coins. Microsoft invested $46 million in it at the start of November of that year, and more than 200 million people signed up for the Legend of Mir game.
The company was delisted by the primary crypto exchanges in South Korea at the end of November 2022 after allegations that it had misrepresented the quantity of Wemix in circulation.
Following an audit, Wemade faced a $41 million tax bill in January of this year. Wemade was charged with fraud the next month for neglecting to register and disclose its operations to the relevant authorities. Wemade refuted those assertions.
