Wemix in negociations with Binance Custody

The Foundation wants Changpeng Zhao's exchange to incorporate cold storage to "secure community assets."

Exchanges & Wallets December 5
Kimberly Rodriguez Medina

The Wemix Foundation wants to protect its users' funds and Changpeng Zhao's SAFU commitment seems to have convinced it. The Foundation is negotiating with Binance to incorporate its cold storage and custody process into the management of the company. The steps between both entities are firm and it is expected that the collaboration will finally see the light of day "next week", as the firm assures in a statement.

Binance Institutional Services offers many crypto services and products, among them, we find custody, the service that has caught the attention of Wemix. The company wants Binance to store 70% of the total supply, which is not yet in circulation in cold storage, and the rest "through smart contracts or external entities." The four major South Korean exchanges, Bithumb, Coinone, Upbit, and Korbit, have criticized WEMIX's transparency, so this seems to be an initiative to go against the rumors.

Doubts about transparency prompted the four exchanges to threaten the Foundation with delisting their cryptocurrency if it fails to comply with a series of monitoring requirements. Digital Asset eXchange Alliance, the group formed by these four exchanges, ensures that the company in question falsified a series of reports on the supply in question. The price of the Foundation's native cryptocurrency plunged with this event and the company acted accordingly.

Wemix filed a lawsuit against the decision of the four exchanges and even stated that: "Upbit abused its powers," according to the company's CEO, Henry Chang. The subsidiaries of the Foundation were also affected and, on December 7, the resolution of the case will take place. It seems that now, not only is it taking action on the matter, but it will also rely on Binance to silence criticism of its transparency.

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