NEM [XEM] rises by 12% after Coincheck resumes services

NEM [XEM], the seventeenth-largest cryptocurrency based on market cap, shot up by more than 12.55% in the past 24 hours. The coin rose in the market despite most of the coins staying in the bear’s kingdom.

According to CoinMarketCap, the coin was trading at $0.107 with a market cap of $965 million. The coin has a trade volume of $30 million and has surged by 13.82% in the past seven days.

The trade volume for the coin is pouring in from Binance, one of the biggest cryptocurrency exchanges, with XEM/BTC pairs. It is followed by Zaif, a popular Japanese exchange which was recently hacked, with XEM/JYP pairs. The other exchanges in the top 5 are Upbit, Poloniex and Bittrex respectively.

NEM said on Twitter:

“#Coincheck resumed $XEM activities today! “

Coincheck announced on their official website:

“Coin Check Co., Ltd. resumed new account opening and payment / purchase of some virtual currencies on October 30, 2018, With regard to ETH, XEM and LSK, technical safety confirmation has been completed with the cooperation of external experts and we have resumed payment / purchase of the virtual currency from November 12, 2018 I will inform you that.”

The exchange had lost $500 million worth NEM [XEM] tokens due to a hack earlier this year. The hack took place in early January 2018, when all the cryptocurrencies were on the bright side of the market. Almost 6% of the circulating tokens were compromised to the hack. This was noted as the biggest hack to take place in the cryptocurrency market after Mt. Gox. According to reports, the tokens were converted on the darknet and were either encashed or converted to other cryptocurrencies.

Post the hack, the NEM team helped the exchange as they had the mechanism to track the wallets which had the stolen funds. However, this came to an end as the hackers started to send some of the stolen funds to ‘innocent wallets’, resulting in the team tracking their wallets as well.

More so, the exchange did not have a license by the Financial Services Authority [JFSA] to conduct operations related to cryptocurrencies at the time of the hack. Nonetheless, Coincheck had agreed to distibute $440 million to over 260,000 users, who were affected by the hack.