Mt. Gox Rehabilitation Plan Is Now Legal: Crypto Advocates Deny Significant Bitcoin Price Impact
According to a recent notification, the Mt. Gox restoration plan has become official and binding. Here’s what community advocates have to say about the possible market effect.
Reimbursing bitcoin investors who had their BTC in Mt. Gox prior to the historic breach has been one of the most often debated and heated subjects in the cryptocurrency world over the last several years.
What was once the world’s largest cryptocurrency exchange was hacked in 2014, and now, seven years later, the creditors’ rehabilitation plan is ‘final and binding.’
As CryptoPotato previously reported in October, almost 99 percent of voting rehabilitation creditors accepted a proposal to compensate investors for losses incurred during the 2014 incident.
Now, in a fresh release, it has been stated unequivocally that the rehabilitation plan has been declared ‘final and binding.’ There is no defined timeframe for when creditors will be able to collect their lost bitcoins, or if they will get them in bitcoin or in US dollars. However, the most recent announcement states as follows:
The Rehabilitation Trustee will next issue repayments to rehabilitation creditors who have been granted authorization to pursue rehabilitation claims in line with the Rehabilitation Plan. Rehabilitation creditors will be notified in full of the particular schedule, processes, and amount of such repayments.
All rehabilitation creditors will also be asked to register their bank account and other personal information with the Mt. Gox online filing system, implying that they may be compensated in fiat currency rather than BTC. This, however, is unknown at the moment.
In any event, this looks to be one of the last stages required for creditors to obtain payment, and the market feels fragile, expecting a possible sell-off after creditors are reimbursed in BTC.
“Any BTC Dip Will Immediately Be Purchased” Naturally, one of the most contentious issues in the community is what will happen to bitcoin’s price if all of the BTC is returned (assumedly in BTC, not in currency).
We contacted a few members of the cryptocurrency community to pick their brains on the subject and gauge their reaction to the possible market effect. The majority of them are unconcerned.
Max Keiser, a well-known Bitcoin bull and long-time enthusiast, admitted that he had some Bitcoin at Mt. Gox. Additionally, he said that he does not believe “the 150K (BTC) will have a significant influence.” Bitcoin’s demand is soaring. Any price drops will be immediately purchased.
Kenzi Wang, co-founder of Hyperedge Capital and Cere Network, also believes there would be no effect, since the event has already been priced into the market.
Personally, I believe that this has already been priced in the market, similar to other prior news such as the Bitcoin option expiration. The market’s optimistic mentality easily swallows these kind of occurrences.
Additionally, we spoke with Jehan Chu, Co-Founder and Managing Partner of Kenetic Capital, who underlined the following:
While the size of the Mt. Gox distribution may generate volatility and short-term selling pressure, the long-term fundamental growth and institutional acceptance of BTC render this a speed bump on the road to the digital economy.
Ayesha Kiani, vice president of business development at asset management firm LedgerPrime, said that the incident “isn’t really much of a talking point” because of the lengthy lockup period. Additionally, she said that the market is “certainly expecting it.”
Another intriguing viewpoint raised by a Twitter poll is whether selling is even debatable. Brad Mills conducted a poll of Mt. Gox creditors and concluded that “the overwhelming majority of Mt. Gox creditors want to retain all of the BTC they receive from Mt. Gox.”
However, the same survey found that the majority of creditors want to sell the BCH they have accumulated as a consequence of the network’s fork.
Adam Back, co-founder and CEO of Blockstream, verified the findings: I can certify that I am selling 0% BTC. However, once a date is set, I believe I may short-sell BCH prior to its release by Mt. Gox’s bankruptcy administrators in order to get a better price before it is smashed by a wave of selling – He said.
Also Read: Binance Releases A List Of Ten Fundamental Cryptocurrency Rights In Support Of Crypto Regulation
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