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Metaverse Project WeMade Put on 'Caution' List in South Korea After Releasing Inaccurate Token Data

WeMade said it accidentally excluded the issuance of tokens meant to supply liquidity to its mainnet and increase user participation.

AccessTimeIconOct 31, 2022 at 10:37 a.m. UTC
Updated Oct 31, 2022 at 4:21 p.m. UTC

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

WeMade, a South Korea-based gaming and metaverse project, was put on an “investment caution” list by the country's crypto exchanges after releasing figures that misrepresented its token supply. WeMade said it accidentally left some tokens out of the calculation.

In a notice to traders, crypto exchange UpBit said WeMade had 72 million more wemix tokens circulating than it reported. Along with UpBit, rival exchanges Bithumb, Korbit and Coinone placed an investment warning on the tokens.

“It was confirmed that there was a difference between the distribution volume plan information submitted to DAXA member companies such as Upbit and the actual distribution volume,” the UpBit notice read. DAXA, the Digital Asset Exchange Joint Association, is the country's self-regulating organization that oversees the legal aspects of crypto offerings.

WeMade said in a Sunday post that it accidentally left out additional tokens issued to partners and funds that were meant to increase participation in the WeMade ecosystem.

“We acknowledge that 1) there may be some time differences between WEMIX Quarterly report posting and real-time circulating supply, and 2) there was some insufficient update of the circulating supply of CoinMarketCap and communication with the exchanges,” WeMade said.

“As more and more partners believe and participate in the future of WEMIX and the development of the ecosystem, a certain amount of WEMIX was inevitably supplied at each partnership/contract signing depending on the purpose or form of the cooperative model,” WeMade explained.

UpBit said it would continue to review the tokens and could end support for transacting in wemix if any untoward activity regarding issuance was found.

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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.