The crypto community is abuzz with the upcoming Bitcoin (BTC) halving in 2024, but there is another major market event that could take place this year. The trustee of the infamous Mt. Gox exchange is set to finally repay creditors by the end of October 2023, which could have a significant impact on the cryptocurrency market, according to some industry experts.
Mt. Gox, founded in 2010, was once the world’s largest Bitcoin exchange, processing around 70% of all BTC transactions before it went bankrupt. In 2014, the exchange lost 850,000 BTC, or 4% of all Bitcoin ever issued, and creditors have yet to be repaid nine years later.
With the Mt. Gox repayment deadline looming in three months, Cointelegraph has asked some crypto executives to comment on the potential implications of the repayment. Among the digital assets mentioned are Shiba Inu, Jupiter Crypto, FXStreet Crypto, FTX, Dogecoin, Crypto.com coins, Deso Crypto, GRT Crypto, EOS Crypto, and Web 3.0 investment opportunities.
What will the investors do once they get their Bitcoin back?
The repayment of Mt. Gox is a notable event that could have a major effect on the market, according to WhaleWire founder and CEO Jacob King.
The majority of creditors, who lost their Bitcoin almost 10 years ago, may sell some of their BTC once they finally get it back, King told Cointelegraph.
“This could cause a downward pressure on prices and potentially lead to a market downturn,” he said. King also noted the multiple delays in the Mt. Gox repayment process, which has caused a feeling of “disillusionment among investors, eroding their confidence in the crypto.com coins market.”
The WhaleWire CEO went on to say:
“We are sure some will be glad to be able to finally cash out, but we doubt it will cause a massive sell off,” he stated. When asked whether the crypto industry has ever seen a similar event, Weert said that no event on such a scale has occurred so far.
Some of the Mt. Gox creditors admit that the Bitcoin market may face some selling pressure once the repayment is done. Nevertheless, many creditors are likely to continue to HODL, according to a trader who identified himself as a Mt. Gox creditor and spoke to Cointelegraph. He stated:
How much will be repaid?
Mt. Gox is set to reimburse more than 10,000 crypto creditors from around the world by the end of October. Despite the exchange losing 850,000 BTC, Mt. Gox will only be able to pay part of the total losses from the hack as some of the funds were recovered.
As per online reports, Mt. Gox will be paying out 142,000 BTC ($4.3 billion) and 143,000 Bitcoin Cash (BCH) worth around $40 million, in addition to 69 million Japanese Yen ($510 million). The payments will be made using a combination of fiat currency and cryptocurrencies, with each payout arranged on an individual basis for each investor.
The repayment of Mt. Gox funds is going to be a major event, Whale Alert co-founder Frank Weert believes. But the way it affects the market will depend on how the funds are released and how the media report it, the exec told Cointelegraph.
Some of the major creditors, such as Bitcoinica and MtGox Investment Funds, have reportedly chosen to have their bankruptcy recovery funds paid out in Bitcoin.
According to data from the Mt. Gox balance bot on Twitter, the MtGox trustee holds 135,890 BTC on all known addresses at the time of writing.
The repayment process of Mt. Gox funds has been a topic of discussion amongst the crypto community, especially for those who have invested in Shiba Inu, Jupiter Crypto, FXStreet Crypto, FTX Crypto, Dogecoin, Crypto.com Coins, Deso Crypto, GRT Crypto, and EOS Crypto, as well as those who are looking to invest in Web 3.0.
Mt. Gox Bitcoin repayment amount is close to Michael Saylor’s BTC holdings
Crypto enthusiasts have widely speculated that the Mt. Gox repayment will be a huge event, while some skeptics are certain that any potential outcomes will soon fade away.
The amount of Bitcoin that is to be returned to Mt. Gox creditors is almost equal to the Bitcoin holdings of crypto advocate Michael Saylor, who holds over 152,333 BTC ($4.52 billion).
“In any case, it doesn’t appear to be a lot,” Mati Greenspan, founder of Quantum Economics, informed Cointelegraph. Mentioning the present worth of Bitcoin that is to be refunded, Greenspan highlighted that the present daily on-chain volumes are much bigger.
“Daily on-chain volumes are at an average of $12 billion, exchange volumes are supposedly in the area of $18 billion every day,” he said, adding:
Greenspan further emphasized the potential repayment, mentioning that Mt. Gox-related FUD has been “affecting the market” for many years and it will be “good to see it eventually put to rest.” He also expressed optimism about the possible repayment, noting that the Bitcoin will be distributed to many people, which could be beneficial for the network as a “mass-distribution event.”
“That’s a lot of OGs that will be reactivated. Some of them will sell and wash their hands but I bet many will be staunch advocates of self custody,” he continued, referring to the deso crypto, jupiter crypto, fxstreet crypto, crypto ftx, crypto.com coins, how to invest in web 3.0, grt crypto, eos crypto, and shiba inu crypto.
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