South Korean game developer Wemade has suffered a major security breach involving its cryptocurrency, WEMIX, resulting in losses of approximately $9 million and sparking concerns over a potential delisting. Some cryptocurrency exchanges have flagged WEMIX as a cautionary asset, with analysts warning that restoring investor confidence could take significant time. The incident has also triggered a broader sell-off in gaming-related cryptocurrencies issued by South Korean developers.
According to CoinMarketCap, WEMIX was trading at $0.45 as of 9 a.m. on Mar. 11, marking a 40.0% drop from last month’s $0.75. Compared to the same period last year, when it traded at $3.19, the token has plummeted 85.8%.
The steep decline follows a large-scale cyberattack. On Feb. 28, the WEMIX Foundation disclosed that hackers had breached its Play Bridge asset-swapping service, leading to the unauthorized withdrawal of 8,654,860 WEMIX tokens. Based on WEMIX’s price at the time (1,020 won per token), the stolen assets were valued at approximately 88 billion won ($6 million). Most of the stolen cryptocurrency was reportedly sold off through exchanges.
The fallout from the breach has sent shockwaves through the gaming cryptocurrency sector, dragging down tokens issued by other South Korean gaming companies.
As of 9 a.m. on Mar. 11, Netmarble’s MBX was trading at $0.19, down 34.4% from last month’s $0.29. Neowiz’s Neopin (NPT) also dropped 42.8%, falling from $0.14 to $0.08. Meanwhile, Kakao Games’ BORA and Com2uS Holdings’ XPLA declined 30% and 50%, respectively.
Unlike Bitcoin, which operates on a fully decentralized network, gaming cryptocurrencies are issued and managed by their respective developers, making them inherently more volatile. These tokens often experience sharp fluctuations, driven by market sentiment and gaming industry developments.
The sharp downturn in WEMIX, the largest gaming cryptocurrency by market capitalization in South Korea, has further dampened sentiment. The Digital Asset eXchange Alliance (DAXA), a coalition of major South Korean cryptocurrency exchanges, quickly designated WEMIX as a cautionary asset following the breach. Under standard procedures, exchanges conduct a two-week review, during which they assess whether to remove the cautionary status, extend the evaluation period, or proceed with a full delisting, depending on the issuer’s response and remedial actions.
Amid mounting pressure, South Korean gaming companies are exploring strategies to shore up their cryptocurrencies by expanding their gaming ecosystems. These tokens are primarily used as in-game currencies within their respective platforms, and companies are now working to introduce new games and increase their tokens’ utility to boost demand.
However, South Korean regulations prohibit the use of cryptocurrencies for in-game transactions or their direct conversion into fiat currency, limiting domestic adoption. As a result, developers have shifted their focus to enhancing global interoperability.
Kakao Games has announced plans to integrate BORA into an upcoming baseball simulation game, which will feature a globally recognized intellectual property (IP) and is scheduled for release later this year. Meanwhile, Netmarble is expanding its Web3 gaming platform—a model that incorporates blockchain technology to enable decentralized game operations and transparent reward systems. The company aims to drive mainstream adoption of Web3 gaming as part of its strategy to strengthen MBX.
A cryptocurrency industry insider noted that regulatory restrictions in South Korea have already hindered user interest in gaming-related tokens. “Even without regulatory challenges, the WEMIX incident has severely damaged the credibility of gaming cryptocurrencies, making it difficult for them to regain momentum in the near term,” the source said.
