Mt. Gox Bitcoin redistribution plan approved, how might the market react?

Mt. Gox Bitcoin redistribution plan approved, how might the market react?

The Japan-based bitcoin exchange, Mt. Gox has finally gained approval for its plan to return customer funds following the implosion of the company in 2014 and subsequent bankruptcy filing in 2017. Experts say this is a win for investors and could further legitimize cryptocurrencies as an asset class, but it also might be too late to make up lost ground with most retail traders already out of patience and looking elsewhere.

The “Mt. Gox Bitcoin redistribution plan” was approved by the Japanese government on Friday, and it will be implemented in a few days. The market is expected to react positively to the news.

Mt. Gox Bitcoin redistribution plan approved, how might the market react?

Creditors of the bankrupt Bitcoin exchange Mt. Gox have agreed to a $9 billion redistribution plan, according to the trustee.

Around 141,000 Bitcoin will be reimbursed to investors who lost money as a result of the catastrophic breach in February 2014. While this is good news for the victims, it only accounts for a small portion of what was stolen.

Nonetheless, the repatriation of any Bitcoin would put the long-running story to a close. Furthermore, given that $BTC was valued at roughly $550 at the time of the breach, the victims would be in the black in terms of money.

At the same time, some analysts are concerned about the impact of an increase in supply on Bitcoin’s price.

Mt. Gox used to be the world’s largest Bitcoin exchange.

After 740,000 Bitcoin was taken from investors and about 100,000 from Mt. Gox itself, the Mt. Gox hack sent shockwaves across the crypto ecosystem in 2014. The situation was so serious that some compared it to the fall of Bear Stearns during the 2008 financial crisis.

It emphasized the dangers of trading in cryptocurrencies, especially at a period when shoddy procedures were the standard.

Critics seized on the situation, claiming that crypto does not provide the same level of security as banks. The Federal Deposit Insurance Corporation in the United States, for example, protects up to $100,000 in bank accounts, whereas the Financial Services Compensation Scheme in the United Kingdom covers up to £85,000.

Many people feared the attack would herald the death of Bitcoin since it was the most well-known Bitcoin exchange at the time. Following investigations, it was discovered that the firm was mismanaged, that it was insolvent before to the attack, that there was a lack of separation of roles, and that the software controls were antiquated.

What may the market’s reaction be?

Victims may file claims beginning October 20th, according to the redistribution plan. However, there has been no word on when reimbursements would be made.

“According to the English language version of the statement dated Oct. 20, creditors may chose to collect around 90% of the assets owing to them under the plan that was accepted by a majority.”

Nonetheless, according to Avi Felman, a portfolio manager at BlockTower Capital, the payoff date might cause market volatility as victims extract gains.

“It’s a day that every market player should take track of.

There will almost certainly be a lot of volatility around the event, and if Bitcoin gets too hot, it might indicate a local peak when holders finally get to cash in on their bets.”

Lark Davies, meanwhile, predicted that the recovery of over 140,000 Bitcoin would put “A LOT of sell pressure” on the market.

Gain a competitive advantage in the cryptoasset market.

As a premium Edge member, you’ll get additional crypto insights and context in every story.

Analyses of the whole chain

Snapshots of prices

a little more context

For just $19 a month, you can become a member right now. Examine all of the advantages.

Posted in: Bitcoin, Exchanges, Transactions

Mt. Gox Bitcoin redistribution plan approved, how might the market react?

Like what you’ve seen so far? Stay up to date by subscribing.

Mt. Gox, the largest Bitcoin exchange in the world, announced that they would be implementing a plan to redistribute their customers’ bitcoin holdings to them. This will likely cause some volatility in the market and Mt. Gox’s future as a company is uncertain at this time. Reference: mt gox founder dead.

  • mt gox settlement
  • mt gox scandal
  • mt gox news
  • mt gox hack
  • mt gox creditors
More Stories
COVER Protocol Price Prediction – How Much Will COVER Be Worth in 2021?