Users are being compensated at higher than market prices, making it possible to re-buy the lost XEM coins, lifting up the price.
As expected, the NEM (XEM) price shot upward as soon as trading was resumed on Coincheck, indicating that the price weakness was temporary. XEM added more than 21% to its price in the past 24 hours, regaining to $0.42. The coin is still far from reaching its previous peak against both USD and BTC.
Trading volumes reached over $122 million in 24 hours, with Asian trading still having the biggest share. The booming price of XEM happens at a moment when the markets are still sliding after the big sell-offs in January. But the recovery of XEM is still tentative and the price may slide back.
As limited trading resumed on the affected Coincheck exchange, the NEM founder made an official statement on the case. Lon Wong said:
“The XEM trading exchange has had a wake-up call to double-check security measures and deploy all necessary security mechanisms moving forward. Together, we can continue to create a robust ecosystem for the future.”
But Wong noted that the NEM Foundation could not promise to control third parties that deal with the blockchain, or the XEM digital asset.
The Coincheck exchange could easily compensate the hack due to its extraordinary gains from trading fees last year. The redistribution of $435 million for 260,000 customers may have served as immediate profit-taking at a guaranteed price of $0.81.
Projects on NEM
Projects continue to choose the NEM network, and become too numerous to count.
Having digital assets on the NEM platform not only underlines the technology’s influence, but may serve as positive price pressure for the XEM coin, especially if used in fundraising, in the manner of Ethereum.
But in the case of NEM and other assets below a dollar, the appreciation may take some time, as with other platforms that are just starting to gain ICOs.
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