Whether the Mt. Gox distribution of 150k BTC is Coming, Will Bitcoin Go Through a “Black Swan” Event?

Bitcoin (BTC) is facing a new threat in the near future as users of the Mt. Gox exchange are about to get their BTC back. In a new letter dated July 6, attorney Nobuaki Kobayashi, who was appointed trustee in the Mt. Gox, confirmed that he is “preparing to repay” the exchange’s account holders.

We often go to find out who MT. Gox is and whether the release of $3 billion in Bitcoin from Mt. Gox created a market bottom in August?

MT. Gox Overview?

What is Mt. Gox?

Mt. Gox is a bitcoin exchange based in Shibuya, Tokyo, Japan. Launched in July 2010, in 2013, and in 2014, it processed over 70% of all bitcoin (BTC) transactions worldwide, as the largest bitcoin intermediary and bitcoin exchange. Top of the world.

In February 2014, Mt. Gox suspended trading, shut down its website and exchange services, and filed for bankruptcy protection from creditors. In April 2014, the company commenced bankruptcy proceedings.

The victim of a major hack, Mt. Gox lost about 740,000 bitcoins (6% of all bitcoins in existence at the time), worth the equivalent of 460 million euros at the time and more than $2.6 billion at the February 2019 price. An additional $27 million was missing from the company’s bank account. Although 200,000 bitcoins were eventually recovered, the remaining 650,000 were never recovered.

How did the attack on Mt.Gox go?

According to the investigation, the Mt. Gox exchange was hacked in September 2011. Mt. Gox became insolvent within 2 years and lost all of its bitcoin in 2013. Additional evidence shows that Mt. Gox was short of 80,000 bitcoins from the exchange itself before Mark Karpeles bought the exchange in 2011. On February 7, 2014, Mt. Gox stopped all Bitcoin withdrawals. Then, on February 24, 2014, the exchange stopped working. It claims hackers stole more than 744,000 bitcoins from customers and 100,000 bitcoins from the company. On February 28, 2014, Mt. Gox filed for bankruptcy protection in the US and Japan.

The aftermath of the Mt. Gox.

Mt. Gox declared bankruptcy in March 2014. And as reported by Mt. Gox they found 200,000 Bitcoins in an old digital wallet. And this Bitcoin was used on the previous exchange in June 2011. The old creditors still believe in this statistic. However, the company Mt. Gox is still under bankruptcy protection.

Mark Karpelés was arrested in Japan in August 2015 and charged with fraud and embezzlement, although no charges were directly related to the theft. He was imprisoned until July 2016, and was released on bail

USD, BTC or BCH

More than eight years after the collapse of the Mt. Gox, it looks like the affected and lost investors are about to get their BTC back.

In the letter dated July 6, 2022, attorney Nobuaki Kobayashi, who was appointed trustee in the Mt. Gox, confirmed that he was “indebted” to the creditors. 137,000 BTC worth roughly $2.8 billion will soon be released into the market.

The event has been in the spotlight for a long time, because of concerns about its potential impact on market prices. Commenters have suggested that the price of Bitcoin will be very low compared to the current price of $20,900, leading to many doubts that investors who receive their Bitcoins will be able to immediately dump large amounts of Bitcoin into the market, exerting huge selling pressure on the price.

Will the Mt. Gox coins affect Bitcoin’s price?

Many investors are concerned that the release of 137,000 BTC could result in a catastrophic decrease in the price of Bitcoin due to increased sell pressure, as noted by crypto analyst and host of Crypto Banter Miles Deutscher.

https://twitter.com/milesdeutscher/status/1545765047518896131

Some have even theorized that Bitcoin’s price drop this time around could lead to “The Flippening.” The Flippening is a hypothetical event where Ethereum overtakes Bitcoin in terms of market cap, and it could happen if Bitcoin drops to $10,000, with Ethereum up 30% from its current price.

https://twitter.com/EthereumJesus/status/1545178773456187392

However, the fears may be unfounded as many creditors have already sold their claims to crypto funds. Groups such as Fortress Investment Group LLC offered creditors an early payout of between $600 and $1,300 in cash.

Moreover, creditors who do not want to pay early may not want to liquidate their Bitcoin because they want to store long-term BTC. Many of those who plan to receive payment with Bitcoin are likely to store BTC rather than selling it when Bitcoin has decreased by more than 60%. Others invest in altcoins like Ethereum.

What if the Bitcoin is liquidated?

Some of the Bitcoin has already been sold before the upcoming release of Bitcoin. In 2018, 24,658 BTC (worth $260 million at the time) was sold by Kobayashi during a creditors’ meeting.

The liquidation marked the culmination of the 2017 bull run and the start of two-year crypto winter.

If the worst-case scenario occurs, the BTC price may be reduced to less than $ 10,000. In the last months, we pressured the sale of BTC from major events such as Terra’s collapse and Three Arrows Capital’s default.

LFG sold Bitcoin worth several billion dollars in 4 days (May 8th-12th, 2022) causing BTC to decrease by about $ 5,000. The Celsius and Three Arrows event of default (June 12th-16th, 2022 ) also caused BTC to decrease by $ 8,000 and reach the old peak of 2017.

Currently, the BTC price is sideway from $18,000 to $20,000. This is a strong support area for the price. However, we still have to anticipate bad situations that may occur.

What should we do next?

During the current sensitive market, the FUD was launched, and it was easy to respond strongly. So the strategy we need to prioritize now is to preserve capital.
Some of my advice for you now:

• This is not a good time to buy BTC. The market is very sensitive and bad news is posted continuously. If you buy, you should only use a small amount.
• Do not trade Future right now. The market is very unpredictable, the price can be scanned so that Kill Long Kill Short at any time, so you limit Future transactions at this time.
• Hold Stablecoin. Your portfolio should hold Stablecoin as the main period. This helps you be more active when the market has good signs.

Verdict

Above are some of their analysis of the event that Mt.Gox will return BTC to their creditors in the upcoming August. If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Ken. N

Coincu Ventures