NEM (XEM) Value Soars 20% After Coincheck Looks To Refund Customers
As the bloodbath continued in the cryptocurrency market on Friday, the 260,000 previous holders of XEM (the native cryptocurrency of NEM) who were affected by the January 26 Coincheck heist have received better-than-expected news regarding their reimbursements.
Indeed, in a welcome twist of fortune for the distressed traders, the Tokyo-based Coincheck will reimburse them a collective premium of roughly $260 million (USD) compared to the current fiat value of NEM coins.
At the time of the infamous heist, which arguably stands as the most valuable in recorded history, NEM was priced at ~$1.068. Therefore, given the loot totalled 523 million NEM coins, the cyber attackers took off with the equivalent of ~$558 million.
With NEM, and indeed the entire market, taking a blow throughout February and into March, one unit of XEM is now worth a scanty $0.36; a 66.3 percent reduction from the time of the Coincheck hack.
The Chief Operating Office of Coincheck, Yusuke Otsuka, who made international headlines after fronting up to the media alongside Coincheck’s president to explain the cyber attack, confirmed on Thursday that affected traders would be compensated a fiat total of 88.549¥ (~$0.84 (USD)) for each stolen NEM coin; the same conversion rate stipulated just days after the hack occurred.
Whilst still roughly a 20% drop on the price of XEM at the time of the incident, it would seem that impacted investors (except perhaps day-traders) are in no position to complain, because the determined payout amount represents a staggering 133.3% premium on the current $0.36 market price.
In terms of fiat, the ~$440 million (self-funded) compensation that Coincheck will begin to administer next week is some $260 million higher than the market equivalent.
The market has celebrated the news too, with NEM soaring by some 20 percent over the past 24 hours as those cryptocurrencies around it do virtually the opposite. Japan and South Korea are leading the buying, and given the lack of other news out of NEM, it appears that investors are anticipating that once those affected by the Coincheck hack are refunded, they will simply reacquire their XEM holdings that abruptly disappeared roughly six weeks ago.
Coincheck, which has not been operative since the late-January incident, yesterday hinted that this period of inactivity may be a thing of the past, starting next week. Should they do so, it would be in the form of a staggered reopening, where only some of their functions are made available.
Unsurprisingly, Coincheck also revealed on Thursday that they received a business improvement order from the Financial Services Agency (FSA) that focused on their “illegal remittance of the virtual currency NEM due to unauthorised access recently occurred.” This notice came as the FSA also penalised another six domestic cryptocurrency exchanges.
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