Kakao affiliate coin ‘Klaytn’, from 5,050 won to 100 won
Wemix plunges 96% from all-time high
Domestic Coins Hit Highs in Name Value… “We Need to See Growth Potential”
The sighs of coiners who invested in domestically issued coins are deepening. This is because their decline continues due to successive owner risks. Some point out that the popularity built up by the narrative that it was issued by a domestic listed company and the fame of the related person has burst like a bubble.
According to the industry on the 15th, leading domestically issued coins such as Klaytn and Wemix recorded a decline rate of over 50% compared to the beginning of the year. Considering that Bitcoin, the leading stock that determines the direction of the market, has risen by nearly 30% compared to the beginning of the year, this is a reversal.
As of 4:00 PM the previous day, Clayton was trading at 184 won on Bithumb. This is a 59% drop compared to the price range of 450 won at the beginning of the year when the rebranding was announced.
At the same time, Wemix recorded 1,037 won. It is an 83% drop from the 6,195 won recorded at the beginning of this year due to the effect of relisting on won exchanges such as Bithumb.
It is a more shabby report card compared to the all-time high. First, Clayton reflected the interest gained through ‘Kakao Coin’ and soared to 5,050 won in March 2021. Considering that the current price range is 100 won, it is a 1/50th cut.
The same goes for Wemix. Wemix hit a high of 28,000 won at the end of 2021. It has now fallen 96% compared to the price at that time.
◆“Domestic coins that have reached their peak due to popularity, we need to look into their growth potential”
The reason why there has not been a single rebound in the three years since reaching the highest price is not only due to the market cycle. In the meantime, the leading stock Bitcoin has surpassed 100 million won, and major altcoins such as Ethereum, Solana, and various meme coins have renewed their highest prices.
The analysis is that this is largely because the high point was formed based on a kind of name value rather than fundamentals. The structure is such that the price cannot help but fall as the issuers and owners who led the heyday fall into various risks.
In fact, Klaytn first gained market attention in 2018 when it was issued through Ground X, a former blockchain subsidiary of Kakao. Since then, it has been listed on major domestic and international virtual asset exchanges under the name Kakao Coin and has expanded its ecosystem by forming partnerships with large domestic and foreign corporations.
However, since 2023, when Kakao founder Kim Beom-su and executives of Klaytn affiliates were indicted on charges of embezzlement, breach of trust, and unfair trading, the price of Klaytn has been on a downward curve to this day.
The civic group Economic Democracy 21, which led the accusation at the time, claimed that founder Kim and other key executives of the issuer acquired Klaytn for personal gain and then cashed it out to make illicit profits. They also claimed that after issuing Klaytn, they raised about 300 billion won in investment funds through a private sale, but instead of using the funds for related businesses, they personally misappropriated them under various pretexts such as investment, compensation, and service fees.
Clayton has officially stated that it is “groundless.” It is also preparing for a comeback by issuing integrated tokens “Kaia” with the blockchain platform Pincia created by Naver affiliate Line Tech Plus. In the process, it is also showing its intention to erase the Kakao label. Kaia stated that it is currently operated by a non-profit organization with no equity relationship with Kakao. The country of establishment of the foundation is the United Arab Emirates (UAE).
Wemix is suffering from the risk of former Wemade CEO Jang Hyun-guk, who was called the ‘Father of Wemix’. This is because former CEO Jang, who once led the revival of Wemix, is being brought to trial on charges of manipulating Wemix’s distribution volume.
Wemix immediately plummeted 20% immediately after the news was announced. In fact, some investors have raised concerns that Wemix may be filtered out as a problematic coin due to the enforcement of the Virtual Asset User Protection Act (User Protection Act). However, there is also a diagnosis that this scenario may be a ‘worry’ as it is a non-custodial indictment rather than an arrest indictment.
An executive of a domestic virtual asset research company analyzed, “The reason why domestically issued coins have not been able to recover to their peak price range during the bull market in 2021 is not just because of the cycle,” and “The virtual asset market has actually become healthier than before due to institutionalization and the inflow of institutional funds through spot exchange-traded funds (ETFs).”
He continued, “Domestic coins that grew thanks to the fame of their issuers and owners failed to develop their projects consistently, which ultimately led to a continued price decline,” adding, “Rather than expecting an upcoming bull market, we need to take another look at the growth potential of domestic coins themselves.”
[서울=뉴시스]
2024-08-15 17:56:42