Wemade: (Re)Establishing Trust in Blockchain Games (A)

Kang, Jung Koo Wang, Charles C.Y. Allen, David So, Kwangmoon

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HBI

This case explores the fundamental challenges and accounting issues arising from the integration of blockchain technology into traditional business models. It features Wemade, a South Korean online gaming company that has staked its future on blockchain-based games. These games are designed for players to explicitly earn cryptocurrency rewards, which can be converted into cash or in-game non-fungible tokens. At the heart of this venture is the exploration of trust-a critical element that blockchain technology promises to enhance through transparency, security, and decentralization. The launch of the MIR4 Global game on WEMIX, Wemade's blockchain platform, turned the company from a minor force into a pioneer; within a few months of its release, the company's market capitalization rose tenfold. However, operating in a developing regulatory environment, Wemade suffered a series of scandals that resulted in the undoing of almost all of its growth the following year: it failed to disclose that it had sold its WEMIX cryptocurrency to fund an ambitious mergers and acquisitions strategy; it misclassified WEMIX coin liquidation proceeds as revenue, leading to a restatement; and every major South Korean crypto exchange delisted its WEMIX coin, claiming inadequate disclosures about the coin by the company. How could Wemade's chief executive, Chang Hyun-Guk, rebuild the trust that was lost? What lessons should he take away about the benefits and challenges of introducing blockchain technology and crypto to the business?

出版日
2024/06
改訂日
2025/03
領域
技術・情報管理
財務
会計・コントロール
ボリューム
29ページ
コンテンツID
CCJB-HBS-124025
オリジナルID
124025
ケースの種類
Case
言語
英語
カラー
製本の場合、モノクロ印刷での納品となります。

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