A South Korean court upheld the local exchanges' decision to delist Wemade's Wemix (WEMIX) tokens, dismissing Wemade's request to cancel the delisting.
The Seoul Central District Court ruled on December 7 to justify the Digital Asset eXchange Alliance's (DAXA) decision to remove WEMIX from major South Korean exchanges, The Korea Herald reported Thursday.
DAXA, a cryptocurrency exchange group that represents the largest South Korean firms such as Upbit, Bithumb, Coinone, Korbit and Gopax, said that Wemade has not properly disclosed the number of tokens in circulation.
The court has reportedly supported the DAXA's position, emphasizing the importance of transparent reporting of token distribution, stating:
โCrypto assets have no absolute regulator or means to determine their price like the stock market [...] Therefore, the distribution number is crucial because the price is decided as a result of the balance between supply and demand."
In response to the latest ruling, Wemade argued that the firm will continue the legal battle against DAXA and will appeal the court order.
โWe will continue to make efforts to prove the unfairness of the DAXA decision,โ the firm said, adding that it also plans to file a lawsuit. In addition, the firm plans to submit a complaint to the Korea Fair Trade Commission, which is a major regulatory authority for economic competition in the country.
The court's ruling came shortly after Wemade filed a preliminary injunction petition on November 28, after DAXA member exchanges delisted WEMIX for the first time at the end of November.
Founded in 2000, Wemade is a South Korean video game developer, endorsed by major global technology companies, including Microsoft. the signature thrown out its gaming-related Wemix blockchain platform alongside the token of the same name in late 2019.
Related: South Korea Investigates Cryptocurrency Exchanges for Listing Native Tokens
The Wemix cryptocurrency has tumbled amid delisting news since late November, looking even redder amid the latest news. the token has lost around 60% of its value in the last 24 hours at the time of writing, according to data from CoinGecko. WEMIX is also down over 90% in the last 30 days.
According to some reports, Wemix is โโnot the only blockchain platform that could run into trouble due to DAXA considerations.
On December 8, Upbit exchange aware an announcement claiming that DAXA issued a warning about the Waves (WAVES) cryptocurrency. To protect investors, DAXA may take joint measures such as investment caution or even termination of support for the transaction, the company said.
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