MtGox dumped 140,000 bitcoins today? !
Let me analyze the impact for you. "Mentougou" is the Chinese translation of MT.Gox, a Bitcoin trading platform located in Tokyo, Japan. Before July 2011, 80% of the world's Bitcoin transactions took place on the "Mentougou" trading platform. Even during the bear market from 2013 to 2014, the Bitcoin trading volume of "Mentougou" accounted for 70% of the world's total, making it the world's largest Bitcoin trading platform at the time. In February 2014, "Mentougou" announced on its website that it would stop trading and subsequently filed for bankruptcy. The number of Bitcoins stolen from "Mentougou" reached 850,000 (of which 740,000 were from users).
Although MT.Gox has closed down, there are still a large number of BTC, BCH, etc. in its wallet, which must be compensated to creditors. Due to the slow legal process in Japan, it has been claimed that compensation will be paid in the past few years, but it has been postponed in the end. The current regulations require that the compensation be paid before October this year. In 2023, almost all creditors have registered their claims, and a total of 140,000 BTC, 140,000 BCH and about 6.9 billion yen (about US$500 million) must be compensated. MT.Gox has a total of more than 130,000 BTC and BCH, which have not been moved in the past few years, but today it was monitored that 100,000 BTC were transferred out, and they are still being transferred out.
The cash part has been paid out in April, which is not much. The total amount of MT.Gox's own funds and the coins sold before should be enough. This has no impact on the market, and some of the funds may even enter the currency circle again.
The compensation of coins has not yet begun. Today's operation of transferring BTC may be to compensate the corresponding creditors in the next step. The largest creditors include Bitcoinica, M GIF, BTC-E, which has been shut down by the FBI, Coinlab, etc. Most of these institutions have gone bankrupt, and some of their claims have been sold to other funds in advance. With the sharp rise in the price of coins in the past year, these claims have made considerable profits. This means that only a small part of the coins received needs to be sold to recover the cost. In addition, we are still in a volatile bull market, and it is estimated that only some BTC will be sold. For the market, there will be some selling pressure in the short term, but for the medium and long term, these tens of thousands of BTC cannot stop the trend.
Every time Mentougou panicked and fell before, it was an opportunity to buy at the bottom, and this time is likely to be no exception.
