The WEMIX project collapses: how billionaire Choi Joon Hyuk's bet turned into a financial disaster

The virtual currency WEMIX has suffered a catastrophic setback in the South Korean crypto market. After its removal from the country’s major exchanges, the token that was once promoted as the engine of Wemade’s blockchain ecosystem now trades at just $0.39, reflecting an accumulated decline of -64.63% over the past 12 months. This debacle has put Alpha Asset Management, the private equity fund whose CEO is Choi Joon Hyuk, in an uncomfortable position.

Massive investments that ended in losses

Alpha Asset Management made significant bets on Wemade, acquiring shares worth 15 billion won in October 2023 and expanding the position with another 20 billion won four months later, reaching ownership stakes valued at 35 billion won. However, the strategy did not go as planned.

The parent company Wemade, which issued WEMIX through its blockchain-based gaming subsidiary, has reported disappointing results. In the first quarter of the year, the company recorded operating losses of up to 11.3 billion won, while its stock price plummeted by over 25% since the start of the fiscal year.

The profile of Choi Joon Hyuk behind Alpha Asset Management

As an operator of Alpha Asset Management, Choi Joon Hyuk — husband of the renowned South Korean actress Jun Ji Hyun — has seen his private equity investment vehicle affected by the volatility of the crypto sector. The bet on Wemade and its ecosystem of digital tokens represented an opportunity that promised significant returns during the blockchain gaming boom.

Grim prospects for recovery

With WEMIX removed from the most relevant South Korean cryptocurrency exchanges, hopes for a reversal in Wemade’s stock price have diminished considerably. The combination of the token’s decline and the company’s negative financial results suggest that institutional investors like Alpha Asset Management will face significant difficulties in recovering their initial bets in the short term.