'Delisting Turning Point' for Wemix... Both Game Companies and Experts on Alert

Decision on Wemix Delisting Imminent

Game Industry "No Direct Impact"

"Blockchain Business as Planned"

The decision on whether to delist Wemade's virtual asset (cryptocurrency) 'Wemix (WEMIX)', which has been designated as an item of concern, will be made this week. If delisted, it is anticipated that there will be repercussions in the blockchain game ecosystem.

According to industry sources on the 14th, the Digital Asset Exchange Joint Consultative Body (DAXA) extended the designation of Wemix as an item of concern on the 18th of last month and is currently reviewing whether to delist it. The result of the delisting decision is expected to be announced within this week. Wemix was previously halted from trading on major domestic exchanges after it was belatedly revealed that there was a hacking incident involving the theft of Wemix cryptocurrency worth approximately 8.75 billion won.

If Wemix is delisted, a 'red light' may be turned on for Wemade's game projects. This is because the proportion of blockchain games in Wemade's game portfolio is significant. In 2021, Wemade officially launched the blockchain-integrated MMORPG 'Mir 4' in over 170 countries worldwide. 'Mir 4 Global', which incorporates tokenomics, surpassed 1.4 million concurrent users within three months of its release.

Last year, Wemade introduced another blockchain game called 'Night Crow Global'. Featuring a multi-tokenomics structure and various blockchain elements such as non-fungible tokens (NFTs), Night Crow Global surpassed $10 million in sales within three days of its release, boosting last year's performance.

Some in the industry express concerns that if Wemix is delisted, it could lead to a contraction in the blockchain game industry, given Wemade's consistent global performance. However, game companies maintain that there will be "no significant impact."

A blockchain game industry insider stated, "There was no significant impact during the first delisting of Wemix," and "The delisting of Wemix is not expected to have a major impact on the blockchain game industry. It is unlikely that game companies will withdraw from developing blockchain games."

Other game companies point out that the situation is different because their proportion of blockchain game business is small. While Wemix is Wemade's flagship project, other game companies are relatively small-scale, treating blockchain games as a future investment concept.

Another blockchain game industry insider said, "We are not paying much attention to the delisting of Wemix," and "The impact of blockchain game-related industry sanctions is greater than the aftermath of Wemix, preventing active business promotion."

There was also a lukewarm response to the potential decline in cryptocurrency prices of other domestic game companies due to the delisting of Wemix. The insider said, "The coin prices have already dropped significantly, so there seems to be no meaningful impact." The virtual assets issued by domestic game companies include Wemade's Wemix, Netmarble's MARBLEX, Kakao Games' BORA, Com2uS Holdings' XPLA, and Neowiz's Neopin.

Experts explain that the Wemix incident and the growth potential of the blockchain game industry should be viewed separately. The hacking incident that led to Wemix being at the delisting turning point is pointed out as a technical limitation due to poor management rather than a flaw in blockchain technology itself.

Professor Kim Jung-tae of Dongyang University’s Department of Game Studies said, "The academic community also sees great potential in blockchain games," and "By leveraging the technical strengths of blockchain, innovation can be brought about, and figures like former U.S. President Donald Trump and Elon Musk view the blockchain market positively. Rather than seeing the blockchain game industry itself shaken by this incident, there is a need to calm the current overheating and respond calmly."

Kim Hyung-jung, president of the Korea Fintech Society and a professor at Kookmin University, said, "It is difficult to know at this point whether Wemix will be delisted," but "Judging by the fact that Wemix is holding offline meetings, it seems that the possibility of delisting is considered high."

He added, "It seems important whether exchanges will collectively delist or decide individually," and "If Wemade's financial strength supports it, even if Wemix faces a second delisting, it could be listed again."

Park Soo-bin, Hankyung.com reporter waterbean@hankyung.com