The conclusion of the Mt Gox bankruptcy case in June saw the ruling that customers should be repaid their lost coins. The bitcoins that are worth billions according to the current market value. This has us wondering if the release of the Mt Gox bitcoins could crash the crypto market.
The bitcoins worth over one billion at the current price have not been circulation since 2014. Now, they are set to be reabsorbed in the market soon with the settlement set to happen by Valentine’s Day in2019.
Mt Gox problems started in 2014 when the site lost 850,000 bitcoins to hackers that have never been found to this day. At the time they were worth $460 million (and $5.5 billion now). A large amount of the coins were recovered and put under the care of Nobuaki Kobayashi.
He is currently in control of BTC worth $1.9 billion. The customers now have to wait until October 22nd before they can make a claim and the payments have to be made before Valentine’s Day 2019.
Releasing such a big number of coins in the market can cause a much damage to the crypto market. One has only to look back in February of this year when Kobayashi sold 18,000 BTC and this caused the price to dip.
Some experts believe once the customers receive their coins they are likely to sell them. Speaking to the Telegraph, Kim Nilsson an Ex-Mt Gox customer said the release of these coins in the market will completely crash the market.
When the heist took place, the blame fell to Mark Karpeles the owner of the site. He had bought the site from Jed McCaleb after the American felt he didn’t have what it takes to manage the large sums of money that were flowing in.
Karpeles, the self-proclaimed geek as it would turn out wasn’t that qualified as well.
Do you think the release of Mt Gox bitcoins could crash the crypto market? Share your thoughts in the comment section below.