Coincheck Back to Work After Major NEM Theft

January 2018 was a poor start for the crypto exchange platform Coincheck, which experienced a major hack that drove it to a big financial pothole. However, not all is lost, as a new management, Monex Group, earlier in 2018 acquired the platform. Coincheck is up and running again, will soon accommodate customers for crypto services as well as new accounts registration.

Coincheck back on its feet

The major hack that took place in January 2018 left many questions unanswered. Hacking is a major challenge in the crypto space and many exchanges that have undergone the ordeal became defunct. However, in the case of Coincheck, operations will be back to normal, thanks to Monex Group that acquired the platform several months ago.

In a bid to resume operations, the two companies issued a joint press release to alert the public of the proceedings. As circumstances stand, Coincheck is expected to open its doors to customers, especially new account registration. In addition, selected cryptocurrencies are allowed to deposit, such as:

  • Bitcoin
  • Ethereum Classic
  • Litecoin
  • Bitcoin Cash
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Users will be able to purchase the same digital assets once they access the trading platform.

What about NEM and other virtual currencies?

Following the change, some minor issues are bound to arise. It emerges that the platform’s services may be “difficult” with more users trying to access the services. Therefore, any volume changes or fluctuations will hamper trade and result in a temporary suspension. All the same, the platform will again support fiat currency deposit or withdrawal in JPY. The platform will also support cryptocurrency lending as well as margin trading.

During the January hack on Coincheck, the hackers went away with huge amounts of NEM cryptocurrency. When the new operations resume, Coincheck has decided not to support NEM together with other altcoins. However, it will support them in the near future.

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Cryptocurrency exchanges are an integral part of the crypto space. Anything interfering with their operations can pose significant risks to investors and other players in the industry. In this regard, Coincheck is improving its risk management system. Besides, the company seeks to revise its policies that will govern the listing of more cryptocurrencies and tokens.

The bouncing back of Coincheck is a positive for the crypto industry. While the initial step seems limited, it is crucial. The company just needs to establish trust with its customer base. While people still remember the January hacking incident, it is an example of how the crypto industry can bounce back amidst the challenges.

What is NEM?

NEM is one of the altcoins that provide security and a scalable platform. It operates on the Proof-of-Importance protocol. The cryptocurrency is environmentally friendly and more secure, compared to Bitcoin and Ethereum. Besides, NEM network requires little energy for mining and upkeep unlike Bitcoin and Ethereum that require hundreds or thousands of electricity hogging mining machines. This implies that a NEM node can run on the cheapest computer because it consumes very little energy. Importantly, the PoI protocol draws more people to NEM network, so they can use, instead of hoarding it.

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This article is not a direct investment or trading guide. It’s for informational, educational, and entertainment purposes only.

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