Rapid increase in high-frequency trading… Ants are dumped
‘Listed on KOSDAQ’ Wemade is also mixed
Industry “Self-regulation authority setting opportunity”
Ahead of the court’s decision on the decision to delist Wemix, stock prices related to Wemix and the game company WeMade, the issuer of Wemix, went up and down and rode a roller coaster. According to the court’s decision, the scope of self-regulation of DAXA, a joint consultative body of domestic virtual asset (cryptocurrency) exchanges, could be prepared, drawing attention from the industry.
According to the virtual asset industry on the 7th, Wemix, which formed a price in the late 800 won range on Bithumb, rose sharply to 1076 won at one time in the morning, and was traded at 865 won, down nearly 20% a few hours later. Upbit, which accounts for a significant portion of Wemix’s trading volume, also continued to fluctuate after plummeting from 1,160 won to 1,000 won during the same time period, and Wemade’s stock price, which is traded on the KOSDAQ market, also showed a large price fluctuation.
The extreme volatility of Wemix and WeMade-related stocks is due to the sharp increase in high-frequency trading ahead of the results of the application for an injunction to suspend the effect of ‘Wemix transaction support termination’ of Civil Agreement Part 50 (Senior Manager Song Kyung-geun) of the Seoul Central District Court on this day.
It is also difficult to rule out the effect of throwing the number of holdings by holders, who were concerned that the stock price would drop at the same time as the decision to dismiss. In the Wemix holder open chatting room, questions such as “When should I ask?” were overflowing with complaints such as “I don’t know how to live if I get rejected.”
Previously, Daksa decided to delist Wemix on the 24th of last month and decided to stop trading from 3:00 pm on the 8th, but Wemics protested against this and filed a lawsuit with the court on the 28th of last month, four days later, asking to stop it. At the interrogation held on the 2nd, the lawyers of WeMade and the exchange engaged in a tense battle of words. Until the 7th, when the court judgment was just around the corner, both sides submitted related materials to the court.
No matter which way the outcome of the application for provisional injunction turns out, there are many prospects that it will be difficult for the price of Wemix to recover to the level before the controversy. At the time of citation, Wemix will continue to be traded on domestic exchanges, but in order to restore the damaged trust, it is necessary to argue that there have been problems with the decision to delist for several years through a lawsuit on the merits. If rejected, Wemix will immediately go through the delisting process. In this case, you can appeal against the decision, but there is a high possibility that it will speed up the listing on major overseas exchanges such as Binance.
The court’s decision is significant. This is because it can serve as an opportunity to set the scope of authority of Daksa regarding listing and delisting. Kim Hyeong-joong, president of the Korea Fintech Society and special professor at the Graduate School of Information Security at Korea University, said, “If the listing criteria are mentioned in the court decision, it may have a legal character.” It can be done,” he added.
Meanwhile, Lee Bok-hyeon, head of the Financial Supervisory Service, met with reporters right after the meeting with the heads of research institutes held at the Bank Hall in Jung-gu, Seoul, and said, “I am aware of Daksa’s efforts while communicating with the Financial Services Commission and the Financial Supervisory Service (regarding the standards for delisting).” “If it is adjusted according to internal and external standards, I have the idea to see (at the Financial Supervisory Service level) whether the standards are correct or not,” he said.
Reporter Min Na-ri