Compared to other crypto currencies, NEM was able to increase its value last week. This can be seen as a recovery of the crypto currency, which struggled with the consequences of the coincheck hack throughout February. In the meantime, the price has consolidated strongly again.
NEM was the only one of the 200 most valuable crypto currencies in terms of market capitalization to make a high last week. The market capitalization of the platform rose from 2.6 billion US dollars to 3.7 billion US dollars in the meantime. This corresponds to an increase of over 44% within seven days. On March 14, NEM fell sharply together with other crypto currencies. Nevertheless, the question arises as to what led to a temporary price increase of over 60 %. As the development since March 14th showed, NEM could not hold its own against the generally bearish mood on the market and had to accept significant price losses accordingly.
Coincheck can pay the Bitcoin evolution
The reason for the extraordinary increase was probably a recovery after the hacker attacks on Coincheck: https://www.onlinebetrug.net/en/bitcoin-evolution In January, unknowns carried out one of the largest attacks on a Bitcoin evolution crypto market to date. The Japanese trading platform lost a credit of 430 million euros. Around 260,000 customers were affected. The only crypto currency that was stolen: XEM. 523 million units have changed hands. This corresponds to almost 6% of the total tradable volume, which is almost nine billion.
When it was discovered that a security breach at Coincheck made hacking possible, Japanese regulators put pressure on the trading platform to increase its security measures. To ensure that this does not happen again, 16 trading platforms in Japan formed a self-regulatory community. However, these efforts were not enough for the Japanese regulators. The regulator has therefore closed two exchanges for a month and imposed five further conditions.
A few days ago, Coincheck announced its intention to refund 80% of the lost money to the affected customers. On their website they apologize for the illegal transfers and promise fundamental optimizations. New registrations and various other features are currently still blocked. These measures have obviously reversed the loss of confidence in trading with NEM.
What is behind NEM/XEM?
In Barcelona we met Albert Castellana from the NEM Foundation as part of the Bitcoin and Blockchain in Europe series. NEM is a platform that allows customers to create their own blockchains and crypto currencies, among other things. The various applications that are possible are the creation of financial instruments, supply chains, smart contracts and smart assets. The special thing about the corresponding currency unit XEM is that they work neither with Proof of Work, nor with Proof of Stake, but with Proof of Importance. Blocks are not mined with a lot of computing and energy, but harvested. This is done by automatically selected users, who are characterized by a lot of activity in the network. You can learn more about NEM/XEM in our tutorial.