WEMIX plummets 80%, delving into the South Korean gaming company Yoozoo behind it.

Original Title: "The Pain Points, Opportunities, and Freshest Cases in the Chain Game Track" Part Four: Thoughts on the Token WEMIX from the Korean Game Company Yumede, Which Plummeted 80%"

Original Author: W Labs Guatian Laboratory

Speaking of a few days ago, the Korean crypto community, which was already in mourning due to the FTX incident, was shaken again: Token Wemix of Korean game developer Hanbitsoft, which exploded with the chain game "Legend 4" last year, plummeted by 80%. I had to look into this, so I Googled some information, mainly because Wemix was jointly delisted by the five major Korean trading platforms last Thursday, the 24th.

Take a look at the price chart of WEMIX on CMC, it has gone like this, even more Luna than FTX:

At the same time, Yumeide's stock price also plummeted by 30% on the 25th, because the limit down of the Korean stock market is 30%... It's really a tragic situation. Fortunately, there are basically no Korean chain game enthusiasts in the Guatian community, otherwise, after the Luna incident, FTX, and now WEMIX, even the most mentally healthy investors cannot be so mercilessly cut.

Today's article will not involve any specific projects or models. Instead, let's talk about what Yumei De has done to be boycotted by trading platforms, and look ahead to the industry and the future. This is also in line with the theme, pain points, and opportunities of this series.

(一) A Look into the Yumeide Incident

First, let's gossip about what exactly caused Yumei De to be collectively banned by five Korean trading platforms. After researching a lot of information, the general storyline is as follows:

Yumede has a history of wrongdoing: earlier this year, Yumede secretly sold 50 million WEMIX coins and made about $250 million. After the news broke, it immediately caused panic selling by retail investors, and the price of WEMIX coins plummeted from 7,000 Korean won to 4,000 Korean won. It is estimated that this was the first offense, and the trading platform and retail investors could not find any obvious evidence, so they could only keep an eye on it. In fact, if Yumede sold the team's unlocked coins, it would be understandable, but Korean media revealed that Yumede may have sold coins belonging to the ecosystem in the pie chart (WEMIX has a total of 1 billion coins, of which 74% will be used to support the ecosystem, which was originally built for long-term development), which is a bit unfair.

On October 28th of this year, the five major trading platforms in South Korea discovered that the actual circulation of WEMIX greatly exceeded what they had disclosed to the trading platforms. As a result, they marked WEMIX with a "investment warning" and requested that Yumede provide relevant information and materials during the clarification period. Yumede was still quite stubborn at this time, saying "No, there are always troublemakers trying to harm us!"

On November 24th, after two extensions, the five major trading platforms could no longer tolerate it and made the decision to simultaneously delist WEMIX. The reason was: significant deception of actual circulation, providing insufficient or incorrect information to investors, submitting erroneous data during the clarification period, and damaging market trust. As a result, WEMIX plummeted to only 20%.

What's even funnier is that the CEO of Yumeide held an emergency press conference that day, crying and complaining about the "super bullying" incident against WEMIX by the trading platform! Unfair, unjust, and unhappy! Legal measures must be taken against the trading platform! An injunction is requested to require the removal of ineffective BlaBlaBla! But he didn't explain why the actual circulation was so much higher than the announcement! Did you secretly sell coins again? That's the point!

Of course, Guage doesn't understand Korean, so the information collected may not be complete, but the English and Chinese reports are basically like this. If all of this is true, Yumide is deservedly bankrupt. The guys who entered the palace are not worthy of sympathy, and the poor ones are the investors who believed in Yumide. However, this time the leeks were bullied severely and began to rise up. The media said that investors who suffered losses are filing criminal lawsuits against Yumide, and the Korean police have accepted reports and charges. The Yumide management has officially been investigated for "fraud".

(二) Who does the IP of "Legend" belong to?

In the previous article, we also mentioned the love-hate relationship between Shengqu Games in China and Korea's Yumiru over the IP of "Legend". Previously, it was unclear what the dispute was between Shengqu Games and several Korean companies over "Legend". After reviewing a lot of information this time, we finally figured it out. Here's a brief summary:

In 2001, Shanda Games, owned by Chen Tianqiao, acquired the rights to publish "Legend" from South Korean game company ACTOZ for $300,000 and it became a huge success in China.

After Shanda Games acquired ACTOZ, some of the Korean developers who worked on the game "Legend" left and formed a new company called Hanbitsoft.

In 2002, ACTOZ, Yumeide, and Shanda Games reached an agreement: Yumeide and Yatoshi are the co-copyright owners of "MIR2" (Legend 2), but Yumeide entrusted the rights to ACTOZ to exercise, and ACTOZ exclusively granted the copyright of "MIR2" (Legend 2) in mainland China to Shanda Games, while Yumeide has a shareholding right.

This matter was supposed to be settled with Yumeide sharing the money, but they were not satisfied and secretly sold the copyright of Legend to some domestic game companies to make money. Then all parties started a lawsuit that lasted for several years. During this time, the Singapore International Arbitration Court ruled that Yumeide lost, but they ignored it. Then last year, the Supreme People's Court of China made a final ruling (Civil Judgment No. 395), once again ruling that Yumeide lost the case.

After sorting it out, it is clear what style Yumeide Company is - a complete deadbeat and fool! Therefore, secretly selling coins this time is in line with its modus operandi: not taking laws and regulations seriously. Who gave you the courage? Han Gengru from South Korea?

(Three) Is there still a future for this industry?

Let's talk about the encryption industry. After the FTX incident, major media and institutions have been reflecting: is it really only after the ebb tide that we can see who is swimming naked? Before the explosion, FTX was one of the top three digital trading platforms in the world, with a reputation in the explosive head circle second only to CZ, the Jewish elite and Wall Street darling. Then, an article by Coindesk and dozens of words from CZ's Twitter, FTX was finished in three days, with billions of dollars in assets disappearing into thin air. Countless funds invested in FTX were lost. Now that the lid has been lifted, it is discovered that FTX is basically a black box operation, with almost no internal control measures. The explosive head and his harem can do whatever they want. From a distance, it seems that he has the aura of a king, but up close, he is actually just a turtle.

It's not me being mean, but the FTX incident really caused a lot of trouble for many people around me. One of my friends couldn't sleep for two nights because he was constantly checking the FTX interface, hoping that the withdrawal request would be successful. We ended up talking about life, the future, and some friends and things that have passed away, mainly seeking psychological comfort.

Remember the last time I participated in a space organized by Youtuber Leek Brothers, and it was mentioned that many people have left the industry, and everyone's mood was very heavy. One point discussed was that in the early stages of industry development, all sorts of unexpected events will occur, and so-called norms and transparency need to be gradually established after several black swan events and bull-bear cycles. We only hope that industry practitioners can consider risks and controls to the best of their abilities, and perhaps the evolution of the entire industry can be more stable.

Thinking of the introductory textbook on finance that I read when I first started working, "Reminiscences of a Stock Operator", which was about the 1920s, a time when an investor named Livermore founded the technical analysis school. He made a fortune in the stock market without mature regulation, reportedly earning 15% of all US assets at its peak. His most successful battle was shorting during the global financial crisis of 1929. After ups and downs, Livermore went bankrupt and committed suicide for love. After that, the US government gradually began to introduce management methods for the stock market, which led to the emergence of value investment schools like Buffett's. Without efforts to ensure transparency and accuracy of information through regulation, how could Buffett analyze valuable companies? The data given to you would be fake.

It is not uncommon that Liu Qiang, the author of "The Market Wizards of Futures Trading" seven years ago, did not survive the stock market crash in 2015 and jumped off a high-rise building in Beijing. It was only later that the government began to regulate and establish rules for futures companies.

The current encryption industry is just like the early days of the financial industry mentioned earlier, full of legendary stories of sudden wealth and accompanied by risks beyond people's psychological tolerance. I have always believed that the so-called decentralization of blockchain seems to be contradictory to centralized actions such as regulatory norms, but the blockchain industry needs norms and regulations. A bloody market full of fraud and black box operations is destined to not attract a large number of mainstream investors and users to enter.

Crisis crisis, there must be a crisis before there is an opportunity. The events that Yumeide has suffered, such as being jointly removed from trading platforms and being sued by investors, will at least sound an alarm to other malicious project parties: the fraudulent behavior of secretly selling coins and the blatant wrongdoing on traceable blockchains will definitely be caught. Yumeide, as a bad bird, is destined to be eliminated, but there will be more high-quality chain game projects that will stand out after being tested by time and in an environment of increasingly strong regulation. We wait and see.

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