when

WEMIX

Coin

Wemix.fi, the decentralized finance platform for cryptocurrency Wemix, announced the suspension of its lending and borrowing services on July 30. This is just the latest twist in the story of the crypto behind the South Korean blockchain game developer Wemade.
Wemix.fi said the suspension of lending, borrowing, and liquidation functions was connected with “issues related to the liquidation of WEMIX$,” the platform’s USD-pegged stablecoin. Notice of resumption of services would be forthcoming, the announcement <a href="https://www.wemix.com/communication/partial-service-suspension-for-wemixfi-a1d26a91b591" target="_blank" rel="noopener noreferrer nofollow">promised</a>. Wemix.fi did not elaborate on the liquidation of its stablecoin.
<h2 id="ceo-s-resignation-rocked-the-coin-s-value">CEO’s resignation rocked the coin’s value</h2>
The suspension of services comes a day after the news broke that former Wemade CEO Jang Hyun-kook had sold his shares in the company, driving the price of Wemix (WEMIX) to the year’s <a href="https://coinmarketcap.com/currencies/wemix/" target="_blank" rel="noopener noreferrer nofollow">low</a> of $0.94. The crypto’s price also took a beating in March when Jang <a href="https://www.koreatimes.co.kr/www/biz/2024/07/602_370675.html" target="_blank" rel="noopener noreferrer nofollow">resigned</a>. Jang was said to be acting to reduce legal risk to the company after the crypto <a href="https://cointelegraph.com/news/crypto-south-korea-rejects-motion-to-expel-lawmaker-over-crypto-scandal" rel="noopener noreferrer nofollow">was tied to a political</a> scandal last year.
After Jang’s resignation, a fork of its Wemix chain that saw a halving of Wemix issuance and the <a href="https://www.youtube.com/watch?v=Lad_cKxwrwE&amp;t=18s" target="_blank" rel="noopener noreferrer nofollow">introduction</a>&nbsp;of the Wemix Pay service and a second game token. A new governance mechanism was also introduced. Those innovations did not reverse the Wemix price decline, however.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-07/6987d02a-c4e1-45a9-9421-671e607dbcc0.png" alt="Wemix.fi suspends lending amid stablecoin liquidation issues" title="">
 <figcaption style="text-align: center;">Source: Daniel Droegen Declined Your Offer
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/democratic-party-south-korea-compel-parliamentary-candidates-disclose-crypto" rel="noopener noreferrer nofollow">Democratic Party of South Korea mandates parliamentary candidates disclose crypto holdings</a>
<h3 id="wemade-had-problems-even-before-those">Wemade had problems even before those</h3>
Wemix has had a tumultuous history. Wemade <a href="https://cointelegraph.com/news/wemix-gains-200-after-stablecoin-and-boosted-staking-rewards-announcement" rel="noopener noreferrer nofollow">introduced its stablecoin</a> when it launched its mainnet in May 2022. It was fully collateralized by USD Coin (<a href="https://cointelegraph.com/usdc-price-index" rel="noopener noreferrer nofollow">USDC</a>). At the beginning of November of that year, it received a $46 million investment from Microsoft and its Legend of Mir game had over 200 million signups.
In late November 2022, the company was <a href="https://cointelegraph.com/news/wemix-token-plunges-70-after-it-s-delisted-by-korean-exchanges" rel="noopener noreferrer nofollow">accused of misrepresenting</a> the amount of Wemix in circulation and delisted by South Korea’s main cryptocurrency exchanges. In January of this year, Wemade <a href="https://cointelegraph.com/news/korean-gaming-firm-wemade-owes-41-million-taxes-after-launching-100-million-web3-fund" rel="noopener noreferrer nofollow">was hit with a</a> $41 million tax bill after an audit. The following month, Wemade <a href="https://cointelegraph.com/news/wemade-claims-compliance-exemptions-amid-regulatory-investigation" rel="noopener noreferrer nofollow">faced fraud charges</a> for failing to register and report its activities with authorities. Wemade disputed those claims.
Magazine: <a href="https://cointelegraph.com/magazine/inside-south-korea-wild-plan-dominate-metaverse/" rel="noopener noreferrer nofollow">Inside South Korea’s wild plan to dominate the metaverse</a>

Wemix.fi suspends lending amid stablecoin liquidation issues

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Cointelegraph

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