CoinCheck is the leading cryptocurrency exchange in Asia, just recently announced that they had resumed deposits, withdrawals, and purchases of XEM, LSK, and ETH. That has resulted in more than 20% price increase for NEM in just two hours! LISK sees slight price improvements as well. That is all due to the hack which CoinCheck experienced earlier this year.
The biggest theft in the history
The CoinCheck hack is rumored to be one of the biggest hacks in the world. Due to this hack, CoinCheck lost around 523 million XEM coins, which was worth around $534 million. Thus far, Mt Gox hack was the leader in cryptocurrency related thefts. During the Mt. Gox craze, approximately 850,000 BTC were stolen, which was around $473 million at that time.
Interesting facts about the CoinCheck hack are that only NEM tokens were stolen. Those stolen tokens were held on a hot wallet which private key was stolen. All that money belonged to the customers of CoinCheck. After that, CoinCheck didn’t file for bankruptcy and intended to pay back the stolen funds to its customers.
XEM returns to CoinCheck
It looks like the dust has settled and CoinCheck has recovered from its nightmare. Just recently they announced that they are reinstating operations with the cryptocurrency. NEM or New Economy Movement is very popular in Japan, and people are taking this news up very well. The price of XEM exploded almost +20% in the past few hours, but now its already seeing a slight pullback.
They started the payback process during March, this year and it looks like it all has gone smoothly.
Has CoinCheck improved their security measures?
It seems quite odd that this kind of news brings in a lot of hype for the specific token – NEM. NEM was the only token involved in the CoinCheck hack, and it was the single token which was stored in a hot wallet rather than a secure multi-sig wallet. So it seems entirely unclear for me to understand the logic behind this market movement. Many seem to take advantage of the news by trading the token on Binance and Zaif instead. Also, CoinCheck has received an increase in XEM volume. However, that doesn’t answer the question. People have received refunds, and their experience within the exchange has been very frustrating. So why would they ever return to an exchange like that? It could be because CoinCheck is the Coinbase of Japan. It is extremely popular, and users aren’t willing to settle for an alternative.
Photo by Akil Mazumder from Pexels