WEMIX's reduction strategy shakes the crypto market: under the new measures, can it break through the dual peril of law and market?

In the context of volatility in the cryptocurrency market, the fate of WEMIX has drawn widespread attention within the industry. Recent data indicates that while the Web3 gaming sector has attracted significant capital, its average annual failure rate of up to 80.8% highlights the instability and risks in this field. Additionally, WEMIX announced in March 2024 that it would reduce its maximum supply by 60%, attempting to enhance its market position through a restructuring of its token economics.
However, the market challenges faced by WEMIX are not without precedent. In November 2022, WEMIX was delisted from several South Korean exchanges after being flagged as a warning project by the Korea Digital Asset Exchange Association, causing its price to plummet to 0.42 USDT at one point. This incident severely impacted its market capitalization and investor confidence.
Despite facing significant market fluctuations, WEMIX continues to actively expand in the blockchain gaming sector. In 2023, through a $30 million fund established in partnership with Mirana Ventures, WEMIX invested in five Chinese game developers across various game genres. This strategy demonstrates WEMIX's commitment to the development of blockchain gaming, even as uncertainties loom in the future.
Let’s start with WEMIX.

WEMIX: Innovating Scalability and Transaction Efficiency through a Multi-Chain Architecture to Build a Global Blockchain Gaming Ecosystem

The Multi-Chain Platform Architecture of WEMIX and Its Challenges

The construction of the WEMIX platform originated from a comprehensive empowerment of the current blockchain gaming market, particularly in the realization of a multi-chain architecture. The team analyzed existing blockchain gaming platforms and identified three mainstream technical paths: single-chain and multi-chain architectures. The WEMIX team chose the latter, particularly emphasizing the integration of functionalities such as Tokenomics, GameFi, and Marketplace, all based on a "multi-chain" infrastructure.
The reasons for adopting a multi-chain strategy are manifold. Firstly, the WEMIX team possesses 20 years of experience in the global gaming industry, providing a solid foundation for their development of a multi-chain platform. The WEMIX platform has refined advanced technical designs and strong capabilities, but despite these advantages, the challenges in actual operations are also significant, such as handling the complexities of cross-chain interactions, data synchronization issues, and maintaining high system availability.

Recognized Ecological Components and Value-Added Services

WEMIX's multi-chain architecture not only enhances the platform's scalability but also reduces operational complexity. Compared to traditional single-chain gaming platforms, WEMIX effectively simplifies user interaction processes by directly integrating key components such as wallets and NFT marketplaces on-chain. Furthermore, WEMIX leverages its unique multi-chain technology, seamlessly combining gaming economies with decentralized finance (DeFi) through modules like WEMIX PLAY and WEMIX.Fi, thereby enhancing the platform's economic vitality and user engagement.

Three Major Strategies Leading Industry Innovation

1. Strong User Experience - Through its multi-chain infrastructure, WEMIX enables users to flexibly manage and trade assets across different chains, significantly improving user experience;
2. Enhanced Economic Vitality - By integrating Tokenomics and GameFi, WEMIX strengthens the economic cycle within games, increasing asset liquidity and value;
3. Cross-Chain Interoperability - WEMIX achieves interconnectivity between multiple chains, allowing seamless trading of assets across different blockchains, further expanding market boundaries and new user demographics.
   Through these comprehensive ecological components and innovative solutions, WEMIX actively promotes its leading position in the global blockchain gaming market while also facing challenges and opportunities brought about by market changes.

WEMIX Turmoil: Urgent Analysis of Legal Scrutiny and Market Trust Crisis, Project Prospects Face Uncertainty

In June 2023, the market maker for the WEMIX token launched by South Korean listed gaming company WeMade faced a comprehensive forced investigation. This action was a response to complaints filed by WEMIX investors to the prosecution a month earlier. The allegations include fraud, and this investigation is one of the latest controversies triggered by WeMade in recent years.
The troubles of WeMade can be traced back to the period from November 2020 to January 2022, when the company Manhattanized WEMIX worth 225.5 billion KRW without notifying WEMIX users and used the funds to acquire a company. By the end of 2022, the issuance of WEMIX was suspected of leaking, leading to legal disputes with the country's trading platforms, resulting in WEMIX being delisted from several major South Korean crypto exchanges.

Even more concerning, in January 2024, the South Korean National Tax Service pursued WeMade for 53.69 billion KRW in taxes. This amount is the sum of taxes levied on WeMade and its subsidiary Wemade Tree. The National Tax Service conducted a tax investigation on the virtual currency WEMIX issued and used by WeMade and Wemade Tree and decided to impose a recovery fee.
However, WeMade was not the only subject of investigation. According to reports from February 2024, the prosecution is investigating WeMade, accusing it of evading the responsibility of reporting virtual asset holders and obtaining additional profits within the legal framework. Furthermore, WeMade has been accused of violating laws by increasing the number of subsidiaries and constructing a P2E (Play to Earn) ecosystem based on "WEMIX 3.0." The prosecution is particularly concerned about WeMade's virtual asset exchange "Phenix" and virtual asset wallet "PlayWallet," which allegedly failed to provide users with personal passwords, potentially violating specific financial information laws.
These events have not only put WEMIX investors in a difficult position but also dealt a heavy blow to WeMade's credit. As the investigation progresses, South Korea is initially attempting to protect market participants, promote national economic development, and address the challenges of virtual asset crimes, which has become a global focus.

Can WEMIX, After Enduring Many Trials, Turn the Tide?

Despite facing significant legal and market challenges, WEMIX has no intention of slowing down its business expansion and investment initiatives. In October 2023, WEMIX PTE. LTD. and Mirana Ventures jointly established a $30 million fund, investing in five active Chinese game developers across various game genres, with expectations that these games will join the WEMIX3.0 chain gaming platform WEMIX PLAY. Additionally, WEMIX has reached a strategic cooperation with Singapore's Huangpu Digital to jointly launch a $100 million Wemade Web3 fund, aiming to further expand its influence in the Web3 space.
In terms of technological innovation, WEMIX is also making strides. In February 2024, WEMIX renamed its token-based communication platform "PAPYRUS Messenger" to "una Messenger," which has been launched on the Google Play Store and Apple App Store. The platform update includes DAO integration, strengthening the fusion of community and technology. Meanwhile, the WEMIX Foundation has implemented halving measures and a strategy for bulk stock of certain tokens to stabilize its economic model and optimize the structure of token minting.

These proactive investments and technological advancements indicate that WEMIX is striving to overcome existing challenges and seek continuous growth and innovation. However, under the dual impact of legal scrutiny and a market trust crisis, the future of WEMIX remains uncertain. Whether these strategic actions can ultimately translate into a recovery for the company and restore market trust is yet to be validated by the market and time. In today's ever-changing landscape of blockchain gaming, whether WEMIX can truly realize its grand vision is not only the wish of investors but also the focal point of the entire industry, isn't it?