NEM survives first disaster – 6% of tokens stolen

NEMThis project made headlines recently when a busy hub of trading was compromised and about 6% of the currency was stolen. Some fair weather investors along with many of the speculators got scared off.

Yet NEM seems to be weathering the worst of it and continues to hold the line. Perhaps those with a longer view may have seen their buying opportunity. I think this is the correct interpretation, tell ya why if you read on.

Cryptocurrencies have long been overweighted with long term hodlers, who see 10% swings and shrug. Nobody should change their outlook based on some scary event that suddenly happens anyway. Blockchains are designed to be surprisingly hard to kill or manipulate. If the project was going well and the team is moving the project forward, then every time it takes a blow from the world is a buying opportunity.

Bitcoin has been attacked relentlessly since the beginning and that won’t stop as long as people are using it. That’s the basis for having confidence going forward. Nothing has taken it out for almost a decade now, it’s only been hardened. That’s the process.

Blockchain Lifecycle

    stage 1 it works
    stage 2 disaster
    stage 3 moon
    stage 4 well TBH another disaster sorry
    stage 5 mars, retire now amirite
    stage 6 minor tragedy the sky is on fire
    GO TO stage 1

The stolen tokens are tagged and the criminals behind the theft, who may well turn out to be North Korea, will probably settle for mere satoshis on the Bitcoin. Some shady exchange will launder the tokens at a steep discount, so ultimately the value was eroded one way or another. The only question is how long it takes to absorb the loss. From the looks of it, the dirty tokens are going to slowly but surely re-enter the economy.

Some people see the market cap stagnating this week and interpret it as weakness. Me? I don’t invest much belief in any blockchain until it’s survived an existential threat or two. Something about facing adversity that is a critical part of maturing in this market.

6% of the money supply pilfered, diluting it all, and the result is stagnation? That’s about as good a result as one could expect!

NEM pretty much held its ground as the news spread and now as the tokens begin to be laundered. 6% of the money supply pilfered, diluting it all, and the result is stagnation? That’s about as good a result as one could expect! For those willing to take on some risk, the propspects for NEM in the near term look bright, as soon as it becomes obvious that this issue will be worked through.

Author: chain rat

crawlin around where nobody's lookin, gnawing on the crufty bits

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