What impact does the Mentougou (MT.Gox) incident have on the market?
A giant exchange was stolen? Fleeing? Will the Mentougou incident have an impact on the market?
A review of the rise and fall of crypto trading platforms in the past 13 years: rise, persistence, and annihilation
In 2014, the world's largest crypto exchange at the time, Mentougou (MT.Gox), went bankrupt after 850,000 bitcoins were stolen.
On the day the crisis broke out, the price of Bitcoin plummeted by 25%, from $535 to $400.
Six large institutions including Bitcoin China (BTC China), Coinbase, and Bitstamp urgently issued a joint statement to draw a clear line with Mentougou.
This unprecedented crisis was also seen by many as a good opportunity to buy at the bottom.
Among those who bought at the bottom was CZ (Changpeng Zhao), the founder of the world's largest crypto exchange in the future.
This year, CZ sold his house in Shanghai and bought Bitcoin at a price of $600. In less than a year, Shanghai's housing prices doubled and the price of Bitcoin fell to one-third of its original price.
While CZ was busy with Bitcoin, Coinbase, an exchange founded by Brian Armstrong two years ago in the United States, finally welcomed its one millionth user, a young man named SBF, who had just graduated from MIT and was applying for a resume on Wall Street.
Years later, they will be the founders of the three major crypto exchanges, gathered on the 2022 Forbes Crypto Rich List, and occupy the top three.
MtGox in Mentougou was once the world's largest Bitcoin exchange. Because of the theft by hackers, it lost 850,000 BTC and recovered about 200,000. It filed for bankruptcy in February 2014 and then entered bankruptcy compensation.
Due to the efficiency of Japan, it has been delayed for 10 years. The creditors have passively and helplessly increased by hundreds of times.
There are news that Mentougou will pay compensation almost every year, and the result is always the wolf coming. What is different this time is that
At the beginning of this year, the creditors received the compensation documents and asked to fill in the payment address
The on-chain wallet was transferred for the first time in 18 years and was collected to one address.
Therefore, the probability of compensation this time is higher than before. And the compensation will be paid directly to BTC and BCH. From a long-term perspective, the compensation now is definitely a good thing, and the biggest minefield in the cryptocurrency circle has been cleared.In the short term, we need to consider the impact on the market if the 20w BTC is directly compensated.
It is certain that the panic decline in the market will be triggered. The returns of these BTCs are more than 100 times, and the total amount is so large that if some chips are sold, the market will be smashed. At the same time, the overall market confidence is not very sufficient, so it will also cause panic among other people.
However, not all 20w will be sold. It may even be just a small part. In the past 10 years, there have been non-performing asset funds acquiring bonds in Mentougou. In other words, most BTC may have changed hands. In addition, now is the rising period of the bull market, and some people will choose to hold.
Therefore, pay close attention to the wallets in Mentougou. If compensation begins, it will definitely cause panic in the market in a short period of time. However, panic often lasts for a period of time. The real situation is that the selling pressure is not as great as imagined, so it is a good opportunity to buy the bottom in advance.
If you don’t know how to screen strong coins, I suggest you follow me. Click on my avatar, look at my information carefully, find me, and communicate together.
