After the Release of Inaccurate Token Data, the South Korean Government Has Placed the Wemade Metaverse Project on a “Caution” List

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Last Updated on November 1, 2022 by Bitfinsider

WeMade is a gaming and metaverse project that is situated in South Korea. After releasing data that incorrectly overstated its token supply, the cryptocurrency exchanges in that nation placed WeMade on a list of projects that require “investment care.” WeMade stated that it had made a mistake and neglected to include some tokens in the calculation.

The cryptocurrency exchange UpBit stated in a notification to dealers that WeMade has 72 million more wemix tokens in circulation than it declared previously. A cautionary note about investing in the tokens was issued by competing exchanges Bithumb, Korbit, and Coinone in addition to UpBit.
According to the letter that was sent out by UpBit, “It was confirmed that there was a mismatch between the distribution volume plan information that was given to DAXA member firms such as Upbit and the actual distribution volume.” The Digital Asset Exchange Joint Association (DAXA) is the country’s self-regulatory group that monitors the legal ramifications of various parts of cryptocurrency offerings.

In a message published on Sunday, WeMade explained that it had omitted inadvertently additional tokens that had been granted to partners and funds. These tokens were designed to encourage greater engagement in the WeMade ecosystem.

“We acknowledge that 1) there may be some time differences between the posting of the WEMIX Quarterly report 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 in their statement. “We also acknowledge that there was some insufficient update of the circulating supply of CoinMarketCap.”

“As more and more partners believe in the future of WEMIX and participate in 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. “The amount of WEMIX that was provided at each partnership/contract signing depended on the purpose or form of the cooperative model.”

UpBit has stated that it will continue to evaluate the tokens and that it may discontinue support for conducting business in wemix if any questionable behavior relating to the issuance of tokens is discovered.

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