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Mt. Gox Starts Repayments in Bitcoin and Bitcoin Cash
For over 17,000 qualified rehabilitation creditors, the Mt. Goxin exchange has started Bitcoin (BTC) and Bitcoin Cash (BCH) repayments. Several recipients have already verified their payments via approved bitcoin exchanges including Kraken. As Mt. Gox and its creditors near the end of a ten-year narrative, the market expects possible consequences, thus this development marks a turning point.
Mt. Gox Retains Over 32,000 Bitcoin
Based on current rates, Mt. Gox still owns 32,899 Bitcoin, valued at almost $2.099 billion even after making over 17,000 repayments, according to Arkham data. After the 33,960 BTC, valued $2.25 billion, trade moved to BitGo exchange-owned addresses on July 31 still shows this balance. BitGo is the last custodian assisting the Mt. Goxin trustee in the creditor rehabilitation process, notes Valhalla.
Significant Bitcoin Transfers Continue
Late Tuesday Mt. Gox also moved 33,105 BTC, valued roughly $2.19 billion, to a new address. Over the past few weeks, these transactions add to the billions of dollars worth of BTC transferred to Bitbank, Kraken, Bitstamp, and SBI VC Trade among other approved crypto exchanges. For example, Kraken said in mid-July that it intended to distribute money from the Mt. Gox trustee within 7–14 days after having effectively received it. Bitstamp also disclosed intentions to start giving Mt. Gox creditors access to assets starting July 25.
Next Steps for Rehabilitation Creditors
Once due diligence and other required procedures are finished, rehabilitation trustee attorney Nobuaki Kobayashi said, repayments to other creditors will proceed immediately. Kobayashi listed several criteria, including the confirmation of registered accounts, acceptance of the Agency Receipt Agreement by specified exchanges, completion of discussions between the trustee and exchanges, and guaranteeing safe and secure repayments.
A Decade-Long Journey to Repayments
Over a ten-year period of legal procedures, these repayments follow as creditors choose BTC over fiat. Recovering from the Mt. Goxin collapse, the overall creditor distribution scheme comes to $9 billion worth of cryptocurrencies. Originally opened in 2010, Mt. Gox was the biggest BTC trading platform in the world until a significant security hack in 2014 resulted in at least 850,000 BTC lost. While repayments go on, the market gets ready for possible effects should creditors decide to cash out.
Crypto Market Prepares for Possible Effects
Bitcoin’s price has skyrocketed since Mt. Gox collapsed, offering a profit-taking potential once traders are paid back-off. One of the main causes of the recent problems in Bitcoin and the larger crypto market has been the ambiguity around these repayments. Although the team of Coin Bureau notes that the completion of repayments will remove a ten-year overhang on the market, there is still uncertainty regarding the degree to which Bitcoin and Bitcoin Cash will be sold, so possibly maintaining prices low.
Market Reactions and Implications
Popular trader Daan Crypto Trades said that altcoins appeal more than Bitcoin because of their supply overhang. Still, Glassnode says some of the sell-side pressure might be absorbed by long-term investors and holders. From another angle, CoinShares researcher Luke Nolan said that the dynamics of creditor distribution and Bitcoin’s great liquidity could help to offset any impact of possible sales. Nolan thinks creditor sales will cause more likely damage to Bitcoin Cash. Analogously, Galaxy’s Head of Research Alex Thorn said that the real impact of the Mt. Gox distribution on Bitcoin’s selling pressure might be exaggerated.
Conclusion
The continuous Mt. Gox repayments are likely to cause major waves in the crypto market. The possible market impact stays a major topic of debate even as the trade advances in paying its debt. Although the degree of this influence is unknown, the resolution of the Mt. Gox story could provide the crypto scene much-needed stability and clarity.
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