In January there was a massive hack on Japanese cryptocurrency exchange Coincheck. The hack affected several digital currencies, including NEM (XEM) and for a time it appeared that those accounts that were hacked would have to deal with the loss of over $530M in digital theft.
But nearly 3 months on there has been a new development and XEM is one of the few digital tokens that is seeing a revival due to the new development.
So what happened in the latest round of development? Well, in recent news today, Coincheck announced that it will start reimbursing customers who lost money in the January hack. The news was not only good news for those that lost money, it was also good news for investors in XEM. The reason for investor optimism surrounding XEM was that it was the digital coin affected disproportionately by the hack. At the time it was felt that XEM was just not ready for the delicate and uncertain world of digital token security. CEO and founder of XEM, Lon Wong, was quick to issue an apology and he was just as quick in thanking users of XEM this morning for the support they gave when things got tough with the cryptocurrency.
The combination of the good news surrounding reimbursement and the swift engagement from Wong seems to have translated into big gains for XEM. In early trading today XEM was up 8% tracking the last 24 hours of trading according to digital currency tracking website CoinMarketCap. By noon Thursday XEM was up 13.28%, giving a strong edge over most other digital currencies, most of which struggled to trade outside of the red.
XEM’s price is now on an upward trajectory and seems to be benefiting also from a strong underlying technical uptrend driven by bullish signals. XEM has been heavily oversold and has seen RSI drop to around 30 on the scale. This has prompted many to theorize that the reveal over the last 24 hours is due to the digital token hitting a sort of bottom. Analysts also point to the fact that XEM is trading well below its Feb 17 high of $0.64, a fact which also suggests that at the current price of $0.34, there is lots of upside opportunities should XEM continue on its bullish upward path.
Overall XEM is gaining momentum and although there are multiple factors driving this momentum, the overall sentiment from investors and traders suggest that the digital currency could be ready to shake off the hack and make the next step in the evolution of the blockchain technology.