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.
The price of Wemix, a virtual asset created by game developer Wemade, has hit its lowest point this year amid reports that former CEO Jang Hyun-kook, who abruptly resigned in March, sold all his shares in the company.
On July 29, Wemix was trading at 1,408 won on the South Korean cryptocurrency exchange Bithumb, up 0.2% from the previous day. This marks a 30% decrease from the early 2,000 won range at the end of last month.
Earlier, Wemix saw an uptick, particularly after the Wemix Foundation announced plans on June 25 to implement a halving—a reduction of token issuance by half. Starting this month, the foundation will cut the annual issuance from 31,536,000 Wemix tokens to 15,000,000 tokens, with the halving to occur every two years.
This concept is mainly associated with Bitcoin, which occurs every four years and has usually led to significant price increases. In just three days, the announcement drove a spike in Wemix's price from 1,400 won on June 24 to over 2,100 won, thanks to expectations of increased scarcity.
However, news of Jang's sale of Wemade shares quickly overshadowed the ‘halving effect.' 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. Earlier, on July 3, he exercised stock options, converting them into 9.716 billion won in cash.
Known as the ‘father of Wemix,’ Jang was heavily involved in integrating blockchain technology into Wemade's major games, such as ‘Mir 4’ and ‘Night Crows.’ His departure and subsequent sale of shares have sparked speculation in the cryptocurrency market that he may be distancing himself from the Wemix project.
The decline in Wemix's value began following 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. But now, with the complete divestment of his shares, there are concerns about his continued involvement.
Several challenges hinder Wemade's efforts to boost Wemix's value. One significant obstacle is South Korea's strict regulation of P2E (play-to-earn) games. Financial authorities and political circles view such games as potentially promoting gambling, which has led to resistance against deregulation efforts.
