WEMIX Foundation is in talks with Binance’s Institutional custody services, Binance Custody, to take custody of Wemade’s native cryptocurrency WEMIX for secure storage and transparent management of its token. The decision comes amid a legal battle between the South Korean blockchain game developer and local cryptocurrency exchanges.
If approved, Binance Custody will manage WEMIX and verify its circulation volume from next week, as per Wemade Co. Ltd. Moreover, 70% of WEMIX’s total supply, which contributes to 92% of the cryptocurrency that is not in circulation, will be managed by Binance Custody if both parties happen to strike a deal. However, the exact custody volume will be disclosed post-onboarding process.
On the other hand, the remaining are either bound to smart contracts or external entities. Wemade came into the picture because of its token’s controversial circulation, leading to a legal battle against four of the largest exchanges in South Korea including Upbit, Bithumb, Korbit, and Coinone.
It all started when Wemade was attempting to improve the privacy of its token circulation. Soon after, the four exchanges jointly formed the local industry monitoring group, the Digital Asset Exchange Alliance (DAXA).
DAXA then announced that it would delist Wemade’s cryptocurrency citing inaccurate reporting of circulation data. Following the news, the prices of WEMIX and shares of Wemade declined drastically. Wemade Chief Executive Officer Henry Chang called out Upbit, the largest exchange in the country, for abusing its powers. However, Chang has admitted that his company did misreport circulation data.
Last week, Wemade filed injunctions against the exchanges to revoke its delisting decision. The Seoul Central District Court is expected to finalize the matter on December 7, a day before the planned delisting.
Meanwhile, Chang is preparing to commit to quarterly “Ask Me Anything” Conferences. Subscribe to The Crypto Times for more crypto market news.
