Wemade Co. Ltd., a South Korean blockchain game developer, announced Friday that it will buyback and burn US$10 million worth of its native WEMIX cryptocurrency to stabilize its plummeting value after four local cryptocurrency exchanges delisted the token on Thursday.
See related article: South Korea's Wemade shares drop, WEMIX token plunges after delisting verdict
Wemade said it will repurchase and burn two of its tokens - WEMIX on its mainnet and WEMIX Classic on the Klaytn blockchain - until Mar. 8, 2023, at a time-weighted average price on global exchanges and the company's decentralized finance (DeFi) platform, WEMIX.Fi.
"Due to the recent termination of transaction support for WEMIX by four crypto exchanges in Korea, the overall growth rate of the ecosystem has been impaired temporarily causing dismay to everyone involved," Wemade said in a blog post.
On Thursday, Wemade's WEMIX token was delisted from the four largest cryptocurrency exchanges in South Korea - Upbit, Bithumb, Coinone and Korbit - due to the company misreporting circulation data of WEMIX.
The token price jumped back 54% to US$0.3 on Friday following the buyback pledge, recovering from the 70% drop it suffered after the delisting, according to CoinMarketCap data.
After getting banished from the four exchanges, Wemade's Klaytn-based WEMIX Classic, the company token prior to its latest blockchain upgrade in October, got listed on another local exchange, GDAC.
Meanwhile, Seychelles-based crypto exchange OKX also delisted WEMIX from its platform on Thursday, but the token still trades on 13 other overseas exchanges including Huobi and Gate.io, according to CoinMarketCap.
See related article: Wemade in talks with Binance for custody of WEMIX cryptocurrency