2023-07-13 15:39:24
In October, a complicated story that has been going on since 2014 may come to an end. The Mt. Gox BTC exchange was once the biggest platform in the industry, then hacked, robbed, bankrupt, and now they are going to compensate their customers to the tune of billions of dollars. Founded in 2010, Mt. Gox was once the world’s largest bitcoin exchange, handling an estimated 70% of all BTC transactions at its peak. In 2014, the exchange lost 850,000 BTC due to a security incident, which is 4% of all Bitcoins to be issued. The Mt. Gox failure was the most impactful failure in bitcoin history, and now, nearly a decade later, it might reshape the market once more. According to online reports, Mt. Gox will eventually pay back 142,000 BTC ($4.3 billion) and 143,000 Bitcoin Cash (regarding $40 million) to its creditors. In addition, repayment of 69 billion Japanese yen ($510 million) is due in October. Payments are made in fiat currency and cryptocurrency, and the exact payment method is agreed with each investor separately. What will the victims do when they get their money back? It is not difficult to guess that two types of investor attitudes can exist from the perspective of 9 years: one half of the victims will be happy to get back a part of their bitcoins they believed to be lost: these coins have multiplied their value in the past period, so they will certainly realize all the profits, if not all their bitcoins they sell and turn their backs on the crypto world. However, there will certainly be a group who still believe in bitcoin and cryptocurrencies, and the recovered coins will continue to be held or invested in other projects, so they may even have a stimulating, price-inflating effect. Cointelegraph also polled industry experts on the subject, who typically also refrained from speculating too much. The Mt. Gox refund will be a unique event that will likely have a significant impact on the market, says Jacob King, founder and CEO of WhaleWire. – Most lenders will likely sell at least some of your recovered BTC. Sell orders can put pressure on prices and even cause a market decline. We’ve seen more selling than buying in the past year, and many Mt. Gox victims have since moved their money into other cryptocurrencies. In light of what has happened so far, it is hard to imagine that these people will keep their returned bitcoins for years.” However, one Mt. Gox victim told the paper: “When we get our coins back, we’ll probably keep them. However, the news that so much BTC will enter the market can easily cause panic and may even trigger a selling wave among those who expect that we will sell in October. Mt. Gox will compensate more than 10,000 former customers by the end of October. Although the exchange lost 850,000 BTC, it was only able to recover a part of the stolen BTC, so the 142,000 BTC written earlier will be returned to the ex-Mt. Gox for merchants. Total current balance on all known addresses* of the MtGox Trustee: 135890.98002134 BTC. -0.00043187 BTC have been moved away from these addresses since 2018/05/10. $BTC #bitcoin #mtgox mt.gox mt gox 2023-07-13T03:19:03.501Z UTC — MtGoxBalanceBot (@MtGoxBalanceBot) July 13, 2023 While many traders believe that the Mt. Gox refund will be a major market event, others they believe that possible effects will pass quickly. The amount of Bitcoin to be returned to Mt. Gox’s creditors is approx. equal to 152,333 BTC ($4.52 billion) held by Michael Saylor’s company. Mati Greenspan, founder of Quantum Economics, put this into context for Cointelegraph: “The daily BTC turnover on the blockchain averages $12 billion, and the exchange trading turnover is reported to be around $18 billion per day. Therefore, the market is likely to absorb sell orders in a relatively short period of time. Of course, regardless, there may be some selling pressure due to speculation surrounding the event. A lot of people don’t understand basic math.” The expert is optimistic regarding the payback and believes that the fear, uncertainty and despair (“FUD”) associated with Mt. Gox has been weighing on the market for years and it will be good to see it finally end.
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