As a seasoned crypto investor who witnessed the rise and fall of Mt. Gox, I can’t help but feel a mix of emotions as the latest news unfolds. On one hand, it’s heartening to see that some progress is being made towards repaying the long-suffering creditors. On the other, I can’t shake off the fear that these funds might hit the market and add to the selling pressure.
Mount Gox, in part, moved billions of dollars’ worth of Bitcoin to centralized trading platforms. This action implies that more Mt. Gox creditors might receive their due payments as the decade-long ordeal reaches its end.
On November 4, approximately $2.19 billion in Bitcoin (BTC) from a digital wallet linked to the insolvent cryptocurrency trading platform moved to three separate wallets.
A portion of the funds was transferred to digital currency trading platforms OKX and B2C2, as indicated by data from Spot on Chainn, which was recently discussed in a Reddit post on November 5th.
“Over the last 4 days, Mt. Gox has transferred out a total of 32,871 $BTC ($2.22B). Among these tokens, 296 $BTC ($20.13M) was moved to #B2C2 and #OKX. Currently, there remain 12,006 $BTC ($810M) in #MtGox known wallets.
As a researcher, I find myself reflecting on the substantial impact of roughly $9.4 billion in Bitcoin that is owed to approximately 127,000 Mt. Gox creditors, who have been patiently waiting for more than a decade to regain their funds. This massive amount could potentially introduce significant selling pressure, which might trigger a steep drop in the value of Bitcoin, should it reach the market.
Will Mt. Gox add to Bitcoin selling pressure?
As per Spot on Chain’s data, Mt. Gox’s wallets contain approximately $825 million worth of Bitcoin as of the time this information was published.
Over the past decade following Mt. Gox’s bankruptcy, the worth of Bitcoin has grown an astonishing 8,500%, fueling apprehension among investors that former creditors of Mt. Gox might offload their Bitcoins onto the market.
However, Mt. Gox creditors have mostly held onto their BTC instead of selling it.
41.5% of the Bitcoin distribution by Mt. Gox was finished on July 30, with creditors receiving a total of 59,000 Bitcoin. (or) On July 30, Mt. Gox distributed 41.5% of its Bitcoin holdings to creditors, amounting to 59,000 Bitcoin. (or) As of July 30, Mt. Gox had distributed 41.5% of its Bitcoin to its creditors, with the total amount being 59,000 Bitcoin.
Regardless of possessing approximately 4 billion dollars’ worth of Bitcoin, as indicated by a recent Glassnode report from July 29th, it appears that the Mt. Gox creditors are choosing not to sell their holdings.
“Creditors opted to receive BTC, rather than fiat, which was new in Japanese bankruptcy law […] As such, it is relatively likely that only a subset of these distributed coins will be truly sold onto the market.”
Mt. Gox was a prominent Bitcoin exchange based in Japan that collapsed in 2014 following a hack.
Established back in 2010, this platform was handling over 70% of all Bitcoin transactions during its busiest period. Unfortunately, Mt. Gox experienced a significant security breach that resulted in the loss of approximately 850,000 Bitcoins, which ranks as one of the largest cyberattacks on record.
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2024-11-05 14:51