Here’s Why NEM Has Further Upside Potential
NEM prices were a steer for bruise eyes on Thursday. The wider crypto marketplace was crashing while this penny cryptocurrency was sharpened through the roof. Two distinguished developments clearly galvanized this cost action. We have reasons to trust that the XEM silver opening might eventually broach on our NEM cost foresee for 2018.
Most media outlets on Thursday ran headlines about Coincheck creation good on the guarantee to recompense investors in the issue of the scandalous Coincheck hack. But there is more to this cost swell than just that.
What might truly be reviving financier hopes in NEM is maybe the Japanese government’s punitive movement taken on Wednesday. The Japanese financial watchdog, the Financial Services Agency (FSA), punished two of Japan’s cryptocurrency exchanges, FHSO and Bit Station, on Wednesday.
The two exchanges have been systematic to postpone their trade for a month. At the same time, 5 other exchanges have perceived a warning to beef up their security, at the latest by the end of this month.
In total, 7 exchanges were dealt with heavy-handedly by the regulators, one of which happens to be Coincheck. The movement has been undertaken to equivocate destiny hacks.
While the news weighs heavily on the broader crypto market, the owners of the 520 million stolen NEM coins might be welcoming these penalties with open arms.
The timely and fitting movement taken by the regulators is portion to revive shrinking financier faith in internal exchanges.
Meanwhile, in other news, the financier village regained some certainty in NEM following the find of the mislaid coins. Yes, a good number of the XEM coins stolen from Coincheck have reportedly been traced.
A crypto forensics company, BIG Blockchain Intelligence Group Inc. (CNSX:BIGG), has tracked down some of the coins at a crypto sell in Vancouver, Canada. Others have been found on Japanese exchange, Zaif.
How was this made possible? Well, investors have the NEM growth group to appreciate for it. The group combined a “tagging system” for NEM coins, so when the hackers attempted to pierce the stolen coins, they unwittingly left behind a trail. (Source: “Stolen Coincheck NEM Found In Exchanges In Canada, Japan, Law Enforcement To Be Informed,” CoinTelegraph, Mar 2, 2018.)
These two developments might have jointly served to put a bottom underneath XEM prices this week.
It’s value indicating out here that NEM is addressing these certainty issues by outrightly building the possess exchange. Once functional, it might concede investors to trade XEM coins with more assent of mind.
Meanwhile, solutions like the “NEM Cold Wallet” offer investors the combined certainty that exchanges are missing.
Nonetheless, it stays an irony that the crypto distinguished for the certainty fell chase to a certainty breach. But as the boss of the NEM Foundation forked out in his matter on Thursday; like any other crypto, NEM is only as clever as the weakest link.
The Coincheck hack—and scarcely all other crypto hacks in the past—has proven that in the deficiency of clever firewalls, investors will be unprotected to the crypto bandits, even if they’re invested in the most secure, most decentralized, and most private cryptocurrency technologies.
Amid all this chaos, let’s not forget that NEM is a tighten aspirant of Ethereum, and given that Ethereum has warranted a large following on the back of the insubordinate technology, presaging NEM to go down the same trail won’t be a shot in the dark.
Meanwhile, we’re also gripping a tighten eye on any news that would endorse the rumors about Binance adding NEM to the platform. That eventuality could hint another convene in NEM prices.
Regardless, our research suggests that NEM might lift itself together in the entrance days and retrace the stairs back toward our original NEM cost forecast, that is, past the $1.00 mark.