Mt. Gox Creditors Hold Tight Despite Bitcoin Payout
YEREVAN (CoinChapter.com) — Kraken has finished distributing all Bitcoin (BTC) and Bitcoin Cash (BCH) owed to Mt. Gox creditors. Dave Ripley, CEO of Kraken, confirmed this in a July 24 post on X. Ripley stated,
“Krakenfx has successfully distributed Bitcoin and Bitcoin Cash from the Mt. Gox estate back to creditors. It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds.”
Kraken Completes Mt. Gox Distribution. Source: Dave Ripley
This distribution ends a long wait for Mt. Gox creditors. The collapsed exchange owed more than $9.4 billion in Bitcoin to about 127,000 creditors. Concerns had risen about the potential market impact of this distribution.
Bitcoin Holds Steady as Creditors Hold Off on Selling
Despite fears, the expected selling pressure on Bitcoin did not materialize. Many in the crypto community worried that the majority of Mt. Gox creditors would offload their Bitcoin, causing a drastic price drop. However, the opposite seems to be happening.
Ki Young Ju, founder and CEO of CryptoQuant, noted that Kraken’s trading volume did not show significant changes. In a July 24 post on X, he wrote,
“Mt. Gox creditors received Bitcoin 4 hours ago. There has been no significant spike in hourly spot trading volume dominance or BTC outflows on Kraken since then.”
Bitcoin: Exchange outflow (total), Kraken. Source: Ki Young Ju
This indicates that creditors are not rushing to sell their Bitcoin, which is seen as a positive sign.
Diverging Views on Mt. Gox Bitcoin Sell-Off: Analysts Weigh In
Market analysts have varied opinions on this development. Onchain analyst RunnerXBT believes only those with “paper hands” will sell their Bitcoin. He shared his thoughts on X, stating,
“I expect CT to react to the first few 5k BTC+ transfers to CEX. Transfers on-chain do nothing.”
Market Reaction Prediction by RunnerXBT. Source: RunnerXBT
Contrastingly, finance analyst Jacob King expected that up to 99% of Mt. Gox creditors could sell their Bitcoin due to its significant price appreciation since the collapse. This discrepancy in views highlights the uncertainty within the market.
Mt. Gox BTC Distribution Alert. Source: Jacob King Milestone Reached: Kraken Completes Mt. Gox Bitcoin Payout
Mt. Gox was one of the largest Bitcoin exchanges before its collapse in 2014. The exchange lost approximately 850,000 BTC, worth around $450 million at that time. The collapse led to years of legal battles and investigations to recover the lost funds.
Kraken was selected to assist in the recovery and distribution process. The completion of this distribution marks a significant milestone in the decade-long saga. Mt. Gox creditors have waited patiently for the return of their assets, and this distribution provides some closure to a complex and lengthy process.
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