The price of New Economy Movement’s (NEM) XEM token spiked 30% overnight as Japan-based Coincheck Exchange finally resumed XEM deposits and withdrawals for the first time since a devastating $500 million hack in January this year.
— Coincheck(コインチェック) (@coincheckjp) November 12, 2018
Those funds were lost due to security issues within the exchange at the time and the company have since stated that “With regard to ETH, XEM, LSK, technical safety confirmation has been completed with the cooperation of external experts and we have resumed payment/purchase of the virtual currency.”
PROOF OF IMPORTANCE
The infamous hack, one of the largest thefts in the history of crypto, cast a cloud over the Japanese cryptocurrency market and may have contributed in part to the global bear market of 2018.
Coincheck were purchased by the Japanese online broker Monex for around 3.6 billion Yen ($34 million) in April and have since received the necessary approval from the national financial regulatory authorities to trade.
The re-opening of the deposits and withdrawals on Coincheck is welcome news for the New Economy Movement who earlier this year became the blockchain of choice for Venezuela’s President Maduro to launch the nation’s controversial Petro cryptocurrency.
Banned by an executive order by US President Trump, the fledgling Petro focused attention on NEM’s structure as their consensus algorithm, known as Proof-of-Importance, differs from Proof-of-Stake in that accounts are assigned a score based on reputation – or importance – in regards to their relation to the NEM ecosystem.