Wemix.fi, the decentralized finance platform for cryptocurrency Wemix, introduced the suspension of its lending and borrowing providers on July 30. That is simply the most recent twist within the story of the crypto behind the South Korean blockchain sport developer Wemade.
Wemix.fi mentioned the suspension of lending, borrowing, and liquidation features was linked with “points associated to the liquidation of WEMIX$,” the platform’s USD-pegged stablecoin. Discover of resumption of providers can be forthcoming, the announcement promised. Wemix.fi didn’t elaborate on the liquidation of its stablecoin.
CEO’s resignation rocked the coin’s worth
The suspension of providers comes a day after the information broke that former Wemade CEO Jang Hyun-kook had bought his shares within the firm, driving the worth of Wemix (WEMIX) to the yr’s low of $0.94. The crypto’s value additionally took a beating in March when Jang resigned. Jang was mentioned to be appearing to cut back authorized danger to the corporate after the crypto was tied to a political scandal final yr.
After Jang’s resignation, a fork of its Wemix chain that noticed a halving of Wemix issuance and the introduction of the Wemix Pay service and a second sport token. A brand new governance mechanism was additionally launched. These improvements didn’t reverse the Wemix value decline, nevertheless.
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Wemade had issues even earlier than these
Wemix has had a tumultuous historical past. Wemade launched its stablecoin when it launched its mainnet in Might 2022. It was totally collateralized by USD Coin (USDC). At first of November of that yr, it acquired a $46 million funding from Microsoft and its Legend of Mir sport had over 200 million signups.
In late November 2022, the corporate was accused of misrepresenting the quantity of Wemix in circulation and delisted by South Korea’s primary cryptocurrency exchanges. In January of this yr, Wemade was hit with a $41 million tax invoice after an audit. The next month, Wemade confronted fraud expenses for failing to register and report its actions with authorities. Wemade disputed these claims.
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