The Mt. Gox fud can still affect the markets but what is that Gox thing that whenever it is mentioned #btc is dumping?
What is Mt. Gox?
Mt. Gox was once the world's largest Bitcoin exchange, handling over 70% of all Bitcoin transactions globally at its peak. Launched in 2010 by Jed McCaleb and later sold to Mark Karpelès, the platform was headquartered in Tokyo, Japan. It played a pivotal role in Bitcoin's early adoption and price discovery.
Closed
Mt. Gox abruptly shut down in February 2014, filing for bankruptcy shortly afterward. The closure stemmed from a catastrophic security breach where approximately 850,000 BTC (worth around $450 million at the time) were stolen. This was attributed to a long-term security flaw known as "transaction malleability," which allowed hackers to alter transaction details, facilitating repeated withdrawals.
Loss of Assets
The total loss was approximately 850,000 BTC, though 200,000 BTC were later recovered. At Bitcoin's today's price , which hovers around $69,000, the unrecovered 650,000 BTC would be valued at roughly $44.85 billion. Besides Bitcoin, smaller amounts of other cryptocurrencies were also lost, but the primary focus has been on the Bitcoin theft.
The Recovery Process
The recovery process has been prolonged and complex. Following the bankruptcy filing, a rehabilitation process began under Japanese bankruptcy law, aiming to return assets to creditors rather than liquidate them. Nobuaki Kobayashi was appointed as the trustee to manage the recovery and distribution of remaining assets. Over the years, Kobayashi has sold some of the recovered Bitcoin to fund partial creditor repayments, often causing market fluctuations due to the large volume of sales.
The Dumbest FUD
FUD often surround the Mt. Gox saga, mainly due to the significant amounts of Bitcoin involved. Announcements of asset sales by the trustee have historically led to Bitcoin price drops, as market participants fear a sudden influx of Bitcoin flooding the market. This recurring narrative is used by some to manipulate market sentiment, often causing short-term price volatility.
Market Manipulation and Dumping Prices
The repeated mentions of Mt. Gox's asset sales or potential distributions to creditors create a perfect storm for market manipulation. Traders and large holders may capitalize on the resultant panic, short-selling Bitcoin to profit from anticipated price drops. Each announcement about creditor repayments or asset liquidations can trigger a sell-off, even if the actual impact on the market is less severe than feared.
What to Expect
Creditors (like me) are still waiting for full restitution. The timeline for final payouts remains uncertain, largely dependent on ongoing legal proceedings and the trustee's decisions. Once these payouts begin, they might initially cause price dips due to increased supply. However, many creditors might choose to hold their Bitcoin, betting on long-term price appreciation, potentially mitigating the impact on the market.
As I mentioned I am someone affected by Mt.Gox bankruptcy and lost a lot of #btc there so I hope they soon start giving some of them back. But guys please whenever the markets needs to dump some rumor about how Mt.Gox is selling is surfacing around so it is a clear manipulation.
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i dont think the mass will hold.
A lot will dump at market price. Is like a lottery ticket for most since some of them used it back in the days to trade magic cards with crypto.
This was before it became a crypto exchange.
But is nothing to worry about now. Also its something that can be foreseen for a while.
As soon mainstream media shows how people has become rich with it, it could also have a different effect.
Hard to tell.
I am not even sure how many of the ones having BTC back then went through the process of claiming them. especially if they are still into crypto.
Ride on, cowpoke! Hold onto hope for the Mt. Gox restitution. Stay strong during market storms and remember: cowboy up, partner!
wa
whale 🐳🐋