The price of Wemix, a virtual asset issued by game developer Wemade, has fallen to its lowest level this year. The drop follows a report that former CEO Jang Hyun-kook, who abruptly resigned in March, sold all his shares in the company, causing weakened investor confidence.
On July 29, Wemix was trading at 1,408 won on the South Korean cryptocurrency exchange Bithumb, a 0.2% increase from the previous day. This represents a 30% decline from the early 2,000 won range at the end of last month.
Wemix saw an uptick earlier, especially after the Wemix Foundation announced on June 25 plans to implement a halving—a reduction of token issuance by half. The foundation decided to cut the annual issuance from 31,536,000 Wemix tokens to 15,000,000 tokens starting this month, with the halving to take place every two years.
Historically, the halving concept has been primarily associated with Bitcoin, which occurs every four years and has typically led to significant price increases. The announcement led to a spike in Wemix’s price from 1,400 won on June 24 to over 2,100 won in just three days, fueled by expectations of increased scarcity.
However, the ‘halving effect’ was short-lived, following news of Jang’s sale of his Wemade shares. According to a filing with the Financial Supervisory Service, Jang sold all 363,354 shares (1.1% ownership) of Wemade on July 17 and 18, netting approximately 15.477 billion won. On July 3, he exercised stock options, converting them into 9.716 billion won in cash.
Jang, known as the ‘father of Wemix,’ played a crucial role in Wemade’s blockchain initiatives, integrating the technology into major games such as ‘Mir 4′ and ‘Night Crows.’ His exit and the subsequent sale of shares have fueled speculation in the cryptocurrency market that he might be distancing himself from the Wemix project.
The value of Wemix had already been declining since Jang’s sudden resignation announcement during Wemade’s shareholder meeting in March. It was stated that he would remain vice chairman to provide strategic support. The full divestment of his shares raises concerns about his continued involvement.
Wemade faces several challenges in boosting Wemix’s value. A major hurdle is the strict regulation of P2E (play-to-earn) games in South Korea. Financial authorities and political circles view such games as potentially promoting gambling and thus resist deregulation efforts.
