Wemade Investment Turmoil: Alpha Asset Management's Blockchain Gamble Backfires

The blockchain gaming sector is proving to be a high-risk arena for traditional investors. Alpha Asset Management, led by Choi Joon-hyuk, finds itself in a precarious financial situation after backing Wemade, the South Korean gaming company whose cryptocurrency venture has faltered significantly.

The Investment Gone Wrong

Alpha Asset Management accumulated a substantial position in Wemade, acquiring 15 billion KRW worth of shares in October 2023, followed by an additional 20 billion KRW investment in January 2024. Today, this 35 billion KRW portfolio is underwater, with the company reporting an operating loss of 11.3 billion KRW during the first quarter alone. The stock has depreciated over 25% since the beginning of the year, wiping out a considerable portion of the initial investment value.

WEMIX Token Collapse

The core issue stems from WEMIX, Wemade’s native cryptocurrency designed to power its blockchain gaming ecosystem. Once a driver of investor enthusiasm and share price appreciation, WEMIX has lost significant market relevance. The token, which currently trades at $0.36 with a -0.91% 24-hour movement, has been removed from major local cryptocurrency exchanges across South Korea. This delisting represents a critical blow to the company’s narrative and investor confidence.

Market Implications

The situation underscores a broader challenge facing gaming-focused blockchain projects—translating token utility into sustainable value creation. As WEMIX fades from prominent exchange listings, prospects for Wemade’s stock recovery appear increasingly distant. The company’s venture into decentralized gaming, once heralded as innovative, now serves as a cautionary tale about the volatility inherent in crypto-integrated business models.

For Choi Joon-hyuk and Alpha Asset Management, the investment represents a significant setback in a sector that continues to challenge even experienced market participants.