– Bitcoins to be distributed back to Mt. Gox users as deadline for allocating the cryptocurrency is scheduled for Dec 15.
– The rehabilitation plan would see lost funds amounting to almost 140,000 bitcoins returned to users
– Analysts are certain that the huge catchment of cryptocurrency valued at $2.6 billion will negatively affect market price if Mt. Gox recipients choose to sell
In a few days, the controversy surrounding the Mt. Gox exchange may eventually be sorted out as the timeline for concluding the compensation plan is set for Dec. 15.
Almost 140,000 bitcoins valued $2.6 billion in today’s market will be distributed to users who lost their funds in 2014 after the exchange went bankrupt and shutdown.
The Japanese exchange became infamous after it announced in the first quarter of 2014 that about 850,000 BTC had been stolen in various cyber attacks. Mt. Gox shutdown operations thereafter, opening up a long history awashed in controversial legal tussle.
Bitcoin in early 2014 was values at $700 and was only one of the few cryptos to have an established market valuation. It was reported that Mt. Gox, a centralised exchange was in that year handling at least 70% of bitcoin transactions.
The Dec 15 distribution would see users who lost their funds with the exchange get a refund and with an almost 2600% increase in bitcoin valuation, many may be more than willing to sell immediately in the open market and catch in on a windfall.
The implication of this avalanche of sales in the open market according to crypto watchers is that the value of bitcoin may cave in, given the anticipated huge supply that could sway sentiments.
Meanwhile, we earlier reported that Nigerians in the diaspora are now using bitcoin as a new payment model to evade high exchange rate during cross-border transaction.
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