Wemix plummets following resignation of Wemade CEO

Wemix, Korea’s domestically developed cryptocurrency, is falling sharply amid the crypto bull market after the CEO of Wemade, a blockchain game developer that created Wemix, stepped down abruptly.

Wemix retreated to 3,548 won ($2.60) at one point, Thursday, down 40.64 percent from its daily high, on crypto exchange Bithumb after Wemade’s board of directors announced that its CEO Chang Hyun-kuk had resigned.

While it recovered to the 3,700 won level on Bithumb as of 1 p.m. Friday, it continued losing ground at other digital asset exchanges the same day.

For instance, it shed 20.83 percent from the previous day on CoinMarketCap. where it stood at 3,455.42 won as of 1:05 p.m.

The board said Chang was immediately replaced with Park Kwanho, the firm’s founder and chairman, in a bid to placate investor concerns. It also explained that Chang had just been assigned as the vice chairman to back Park.

“The projects related to Wemix will not be affected by Chang’s resignation,” it added.

Nevertheless, sources familiar with the matter remain doubtful as to whether Wemix will fully bounce back in the market.

They argued Chang is “not free from legal challenges” due to a cryptocurrency scandal surrounding independent lawmaker Rep. Kim Nam-kuk and that he voluntarily stepped down in order to minimize the risk to Wemade and Wemix.

Last year, Kim, a former main opposition Democratic Party of Korea (DPK) legislator, came under fire following revelations that he owned around 800,000 Wemix coins in 2021.

The coins were worth around 6 billion won, a significant amount, which was inconsistent with the frugal image that Kim presented as a politician. He quit the DPK in the wake of the scandal.

Chang was summoned by the prosecution last year in connection to the investigation into Kim.

The prosecution’s investigation is not yet over and Wemade executives have been summoned this month. The details concerning those executives were not disclosed.

Regarding Wemix’s top management team, some sources raised concerns that it was Chang who mainly dealt with such business after the digital coin made its debut in 2019.

Park distanced himself from the managerial role after setting up Wemade in 2000 and leading it for next 12 years.