Mt. Gox is gearing up for creditor repayments through Bitstamp, conducting test transactions as part of the preparation process.
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Mt. Gox is preparing to repay creditors
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through the Bitstamp cryptocurrency exchange. -
Blockchain intelligence firm Arkham Intelligence flagged the first test transactions.
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Mt. Gox creditors are owed more than $9.4 billion worth of Bitcoin （BTC）.
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Concerns exist about potential selling pressure from the repayments.
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Community polls show mixed intentions among creditors regarding selling or holding their BTC.
Mt. Gox, the defunct cryptocurrency exchange, is moving forward with plans to repay its creditors by utilizing the Bitstamp exchange. This preparation stage has involved conducting initial test transactions, as identified by blockchain intelligence firm Arkham Intelligence.
On July 22, Arkham Intelligence noted that Mt. Gox addresses deposited $1 to four separate Bitstamp deposit addresses. These test transactions are a crucial step in ensuring that the repayment process functions smoothly once it officially begins. Bitstamp is one of five exchanges collaborating with the Mt. Gox Trustee to facilitate these repayments.
More than $9.4 billion worth of Bitcoin （BTC） is owed to approximately 127,000 Mt. Gox creditors, who have been waiting for over a decade to recover their funds. This massive repayment has raised concerns within the cryptocurrency community about potential market impacts, particularly the selling pressure that might ensue if a significant number of creditors decide to liquidate their holdings.
Finance analyst Jacob King highlighted this issue in a July 4 social media post, predicting that up to 99% of Mt. Gox creditors might sell their BTC once received. He emphasized the difficulty of mitigating the potential bearish effects on Bitcoin’s price if billions of dollars worth of BTC were to be sold gradually over several weeks.
However, a poll conducted within the Reddit community suggests a more balanced outlook. According to the poll, 56% of Mt. Gox creditors intend to hold their Bitcoin, while about 20% have signaled an intention to sell. The remainder of respondents were undecided or provided other responses.
As of July 17, around 36% of the Bitcoin owed to Mt. Gox creditors had already been distributed. Interestingly, large Bitcoin holders, or whales, have continued their accumulation despite concerns over the potential selling pressure. One notable whale purchased 245 BTC, valued at nearly $16 million, on July 17, demonstrating ongoing confidence in Bitcoin’s long-term prospects.
Currently, the Mt. Gox-labeled wallet holds over 90,300 BTC, worth approximately $6.12 billion, as per Arkham Intelligence data. The precise timeline for when Mt. Gox will resume full-scale repayments remains unclear, but the recent test transactions suggest that these are the final preparations before repayments commence.
The impact of these repayments on the broader cryptocurrency market will depend significantly on the actions of Mt. Gox creditors. If a substantial portion of the creditors opts to hold their Bitcoin, the market may experience minimal disruption. Conversely, if a large number of creditors decide to sell, it could introduce significant downward pressure on Bitcoin’s price.
