Mt. Gox Compensates Over 17000 Creditors, What’s Next?

by

As a seasoned researcher with extensive experience in the crypto market, I have closely followed the developments at Mt. Gox since its unfortunate demise in 2014. The recent news of repayments being made to rehabilitation creditors is undoubtedly an encouraging sign.

Mt. Gox, the defunct cryptocurrency exchange that shut down in 2014, has made progress towards refunding affected creditors. By July 24, 2024, over 17,000 creditors have received their repayments in Bitcoin and Bitcoin Cash.

Mt. Gox Repayments Progress

The Trustee representing Mt. Gox has announced that certain Bitcoin and Bitcoin Cash reimbursements have been processed for some of the creditors in their recovery process. These transactions were carried out via selected cryptocurrency exchanges, following previous repayments on July 5th and 16th, 2024. As a result, approximately 17,000 creditors have received compensation up to this point.

Moving forward, I will be required to fulfill certain prerequisites before making repayments. These conditions include verifying the accuracy of my account information with the registration and consenting to the Agency Receipt Agreement as set forth by the designated exchanges.

At the same time, the trustee and the exchanges need to finalize their agreements, and the repayment plans require fine-tuning. As a result, unpaid creditors will need to be patient and keep an eye on future progress.

Bitcoin Market Response to Repayments

As an analyst, I’ve been following Ki Young Ju’s insights regarding the recent Mt. Gox repayments and their impact on the crypto market. Contrary to what some might have expected, there hasn’t been a significant surge in trading volumes or outflows on Kraken, according to his observations as the CEO of CryptoQuant.

The spokesperson expressed that the Mt. Gox inventory for retail sales would behave in a comparable manner to other inventory holdings. Selling a portion of the retail inventory wouldn’t significantly impact the current market conditions, allowing it to absorb the volume with minimal price fluctuation.

After the Mt. Gox creditors’ repayment, all global time zones have passed.

Kraken’s spot #Bitcoin trading volumes and exchange flows are normal.

There was no sudden sell-off, the fear you had was unwarranted. Prices dropping could be attributed to market mood rather than any action taken by Mt. Gox.

— Ki Young Ju (@ki_young_ju) July 24, 2024

Since the repayment process began, each time zone around the world has passed without any significant sell-off of Bitcoin from Mt. Gox. If there’s a price drop, it can’t be blamed on this exchange dumping its Bitcoins in the market as reported publicly. Ju made this clear.

If approximately 10% of Bitcoin is sold off at once, it’s minimal in relation to the current market appetite for Bitcoin. Similarly, if all 100% of Bitcoin was suddenly put up for sale, it wouldn’t make a substantial impact unless this occurred instantaneously.

According to Ju’s latest assessment, which aligns with our findings based on current market tendencies, over the past three weeks, there has been a significant investment influx into the US spot ETF to the tune of $45,000. The market may be able to manage any increased supply by selling it incrementally.

Solana Whales Stake $41 Million in 2 Days as SOL Edges Closer to 50% Breakout Rally

Read More

2024-07-24 22:56