Will Mt. Gox Bitcoin Unlock Crash The Crypto Market?
Will the release of over 140,000 Bitcoins to Mt. Gox victims lead to a market crash? The answer might surprise you. Read on to find out why UBS analysts say investors shouldn’t worry and why the long-awaited payouts could change some lives forever:
Short history: What happened to Mt. Gox in 2014?
Mt. Gox, once the world’s biggest Bitcoin exchange, was hacked in 2014, leading to the loss of 850,000 BTC. Although 142,000 BTC was eventually recovered, the exchange’s collapse caused around 24,000 creditors to be left out of pocket, with many losing their life savings…
After years of legal battles, the rehabilitation process has finally begun, with repayments set to be made from March 10th!
Will Mt. Gox Payouts Hurt Bitcoin’s Price?
One big question looming over the imminent payouts is this: Will the unlocking of all this Bitcoin lead to mass sell-offs and drag down prices?
That’s unlikely, according to UBS. In a new report, its analysts noted that creditors have the option to be compensated in the form of crypto or cash, and have the right to hold off on receiving a payout now in the hope of a greater sum later on.
