Why NEM (XEM) is an Even Better Investment After the Big Hack

You may have heard about the big NEM coin hack that shook the cryptocurrency world a couple days ago. Coincheck, which is the fourth-largest handler of Bitcoin (BTC) to Yen trades globally, had $534.8 million worth of NEM (XEM) stolen from its wallet. The price of this coin immediately plunged about 20% lower in response to the event. But, things have really settled down now – and the organization behind this cryptocurrency really handled the situation well.

Actually, this whole thing was more Coincheck’s fault than anything.

We think that the entire ordeal will help the price of this currency in the long run.

Sure, the hack was pretty bad

Honestly, this whole thing really shouldn’t have happened. NEM (XEM) didn’t really have anything to do with the reason that the coins were vulnerable to the hack.

That was Coincheck. It was storing its NEM coin inventory in a hot wallet – meaning a wallet that is linked to the internet. If you are a cryptocurrency holder, you should know that cold wallets are much more secure – as they are offline.

By comparison, Coinbase keeps basically all of its digital currencies in cold wallet storage. Pretty smart, huh?

The Nem coins were refunded

Thankfully, Coincheck is actually giving out refunds to the people who lost their investments of this currency during the hack. Any users who were affected – which was roughly 260,000 – will be repaid 88.549 JPY per each XEM coin that was taken.

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coincheck.com

Sure, that only covers about $423m (which is a little short), but they are paying back most of what was lost. The Tokyo-based exchange his suspending trading for a while in the meantime.

On top of that, NEM (XEM) dealt with the stolen coin situation. They marked all the individual XEMs that were removed from that hot wallet with a special signature showing they were stolen. Most of the cryptocurrency exchanges that people use are blacklisting those coins, so – according to NEM Reddit page theorists – the thief can probably only sell them on the dark web.

And, in addition, the company knows the address the stolen coins were sent to.

Now, NEM (XEM) is back to business as usual

This coin has completely regained the value that it lost since the hack that was announced on Friday. After all, people were 90% repaid and the hack was pretty well managed.

So, the company is back to business as usual – promoting new ICOs that are launching on the network:

Oh, and it is also getting added to Huobi as a Tether (USDT) pair. Hopefully they keep it in a cold wallet over at Huobi.

So, this coin pretty much bounced back from the biggest crypto hack in history – and all in just a weekend. That’s an extremely resilient coin. It’s reasonable to be confident that this cryptocurrency can handle a lot of other tough situations like this and survive – even come out with a better price on the other end.

This is certainly a worthwhile crypto investment.




Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Stephanie attended University of California Santa Barbara and graduated with a double-major in economics and communications. After working for an accounting firm as an analyst for two and a half years, she began freelancing – specializing in writing content for accounting blogs. After branching out into writing how-to guides and even whitepapers on personal finance and financial technology, Stephanie began writing on cryptocurrencies and blockchain technology. She has been personally buying crypto coins for almost two years, and has written blog content for the past year and a half.

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