Cryptocurrencies Drop After Japanese Exchange Halts Withdrawals

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San Diego, California, Nov 16th 2015: The bit coin was invented by Satoshi Nakamoto in 2008 as a digital form of money but no one truly knows who Satoshi Nakamoto is. Transactions are done through peer to peer networks without the need of a bank making it the first decentralized digital currency. This is a close up photo of several gold plated bitcoins together symbolizing the bit coin market, modern technology, finance, internet, trading, etc.

Enterprise Television- Cryptocurrencies Drop After Japanese Exchange Halts Withdrawals

Cryptocurrencies slumped after one of Japan’s biggest Bitcoin venues halted client withdrawals, spooking investors in a country that’s still wary of digital-token exchanges four years after the collapse of Mt. Gox.

Coincheck Inc., based in Tokyo, said in a series of tweets that it had suspended all withdrawals, halted trading in all tokens except Bitcoin, stopped deposits into NEM coins and was preparing “detailed announcement” on the situation. When reached by phone, an exchange official wouldn’t provide further details and didn’t respond to a subsequent emailed request for comment. Additional calls to Coincheck went straight to voicemail.

Japan’s Kyodo News, citing unidentified sources, reported that part of Coincheck’s NEM had “disappeared” from the exchange, without elaborating. Twitter was inundated with reactions from Japanese people, some who flocked to Coincheck headquarters. Live streaming on Twitcasting showed local media stationed outside the office, seeking response.

NEM, the 10th-largest cryptocurrency by market value, fell 14 percent to 81 cents in the 24 hours through 8:44 a.m. New York time, according to Coinmarketcap.com. Bitcoin dropped 5.8% and Ripple retreated 10% in that period.

“Investors and traders are very sensitive to any news involving the big exchanges,” said Peter Sin, a trader and co-head of the digital currency sub-committee at ACCESS, a Singapore-based cryptocurrency and blockchain industry association. “This will accelerate price declines.”

Cryptocurrency exchanges, many of which operate with little to no regulation, have suffered a spate of outages and hacks amid the trading boom that propelled Bitcoin and its peers to record highs last year.

Like Bitcoin, NEM is a cryptocurrency built on top of blockchain, but it uses a more environmentally-friendly method to confirm transactions, according to its website. Bitcoin mining requires significant computing power, while NEM says it does not.

 

 

Source- Bloomberg