According to Lon Wong, the president of the cryptocurrency firm NEM, manipulating the price of virtual currencies cannot be prevented. He declares,”Price manipulation is not something new.” He encourages regulators to create rules that are relevant and reasonable for virtual currency exchanges. Wong added, “(Price manipulation) is in mainstream markets as well. We are in a very nascent, growing phase of our industry and these things are unavoidable.” However, Wong explained that NEM’s focus is on promoting its products, “..But as far as manipulation is concerned and as far as what we are concerned (about) as NEM, we are more interested in the promotion of our technology than the prices.”
Wong’s response was in reference to a report that appeared in the New York Times that claimed the cost of bitcoin – as well as other digital assets – were being bolstered by the cryptocurrency Bitfinex. Wong explicitly stated that his firm is “not concerned” about any form of price manipulation. Most recently, the digital currency of NEM, called XEM, was a victim of a $530 million heist. Hackers stole the cryptocurrency from Coincheck – a Japanese crypto exchange. Wong acknowledged the little knowledge current regulators have with regards to implementing cryptocurrency rules. He declared, ,”Regulators today are in a learning curve and many of them, I would say, have insufficient knowledge and experience to actually look at how to regulate cryptocurrencies, particularly in exchanges.” However, Wong is optimistic about the future of cryptocurrency and the value of all parties working together to see digital currencies flourish.
He stated, “At the end of the day we should see both sides of the divide, the exchanges and the regulators, coming together worldwide and coming to a conclusion about how to get to the next step.” Last month, more than 500 million NEM coins from Japanese crypto exchange Coincheck were sent to a different account. The total value of the stolen digital coins were pegged at more than $530 million. When the hack was discovered, Coincheck had all its withdrawals of all currencies restricted.