Coincheck Hack Update is One of the Two Reasons That NEM Is in the Green While the Cryptocurrency Market Bleeds Red
NEM proves resilient to the oversized reaction of the cryptocurrency market
NEM in the Green, While BTC, ETH, and XRP Are red
The cryptocurrency markets are certainly in a bearish mood after the US Securities and Exchange Commission issued a statement cautioning potentially unlawful online platforms for trading digital assets. The cryptocurrency markets have already bled $20 million in market cap; about 20% of all market capitalization, following the release of the statement. Brad Garlinghouse, the CEO of Ripple, sees an “oversized reaction” in the markets. We second his opinion as we see all major cryptocurrencies including BTC, ETH, and XRP in red, save for the smart asset blockchain platform, NEM.
We looked into reasons for this strong performance and spotted two very relevant reasons.
Coincheck Hack Update
In a corporate press release (in Japanese, unofficially translated) the company (NEM) announced that that it “will implement compensation for customers who held illegally remitted NEM, by the end of next week.” The release presents a report and issues correspondence to Coincheck customers about unauthorized remittance of virtual currency NEM from its exchange on January 26th.
— Coincheck(コインチェック) (@coincheckjp) March 8, 2018
Lon Wong’s Statement
An official update from the CEO and founder of NEM Lon Wong, on their official Medium channel, addressing the NEM community on behalf of the NEM Foundation, was published on March 8th. The statement thanked the NEM community for their continued support towards the digital asset while also apologizing for the Coincheck Hack. “On behalf of the NEM Foundation, we want to thank the NEM community for its continued support. The Coincheck failure has impacted all of us, and we share the frustration, sense of loss and violation.”