Mt.Gox incident draws to a close: 10-year turmoil review
In the early morning of May 28, the Mt.Gox wallet, which had been bankrupt for ten years, suddenly transferred 141,685 bitcoins, equivalent to about $9 billion. The market believed that this was in preparation for debt compensation, causing the price of bitcoin to fall 3%, falling below $68,000.
Mt.Gox incident review
Mt.Gox is one of the most well-known exchanges in the history of Bitcoin. It was founded in Tokyo in 2010 and acquired by Mark Karpeles in 2011. In 2013, the price of Bitcoin soared, and Mt.Gox became the world's largest Bitcoin trading platform with a market share of 70%.
On February 7, 2014, Mt.Gox suddenly stopped all Bitcoin withdrawals, and 17 days later suspended all transactions, and the website was inaccessible. Leaked documents show that hackers stole 744,408 customer Bitcoins and 100,000 company-owned Bitcoins, totaling about $450 million. On February 28, Mt.Gox filed for bankruptcy protection in Japan and the United States, causing the price of Bitcoin to fall from $951 to $309.
Until 2019, Mt.Gox recovered 141,000 Bitcoins, which were managed and distributed by the trust custodian Nobuaki Kobayashi. In 2022, the court accepted Mt.Gox's Bitcoin repayment procedure, and the specific distribution method was disclosed in 2023. At the beginning of this year, creditors have registered the payment address and are expected to unlock 140,000 Bitcoins for compensation in the next two months.
Selling pressure: limited impact
140,000 Bitcoins are worth $9 billion, and the market is worried about selling pressure. But the Bitcoin market is dominated by institutions and has the ability to absorb. Mt.Gox adopts a decentralized compensation strategy, including cash and cryptocurrency, to reduce the risk of concentrated selling. Most creditors have sold their claims to institutions, and the actual selling volume is limited.
Market sentiment may be affected in the short term, but in the long run, the impact is limited. The payment deadline is October 31, 2024. It is expected that selling pressure will gradually emerge in the short term, but it will not cause a sharp decline.
Political factors: the future of cryptocurrency
Biden and Trump have recently sought the support of crypto voters, showing the importance of cryptocurrency in American politics. According to Grayscale's survey, voters' attention to Bitcoin has increased significantly, and nearly one-third of voters said they are more willing to understand or invest in cryptocurrency.
If the FIT21 bill is passed, it will further relax the US regulation of cryptocurrency and usher in a new market era.The New York Stock Exchange said it would consider opening cryptocurrency trading if regulations are clear. Although SEC Chairman Gary Gensler is critical of this, regulatory relaxation has become a trend.
In short, although the Mt.Gox incident has attracted market attention, the future of cryptocurrency depends more on changes in the political and regulatory environment.
