- Sales of MtGox repayments have been blamed for a $5,000 Bitcoin price drop but this is not backed up by data
- Kraken has finished distributing 48,641 BTC worth over $3 billion
- Bitstamp could start distributing $130 million worth of MtGox funds today
Sales of MtGox repayments have been blamed on a $5,000 drop in the price of Bitcoin, but data reveals that sales have not increased dramatically since the billion-dollar payouts. Kraken recently revealed that it has finished distributing 48,641 BTC worth over $3 billion at the time, while Bitstamp will distribute $130 million worth of MtGox funds today. Despite fears that creditors will sell the moment they get their coins, this does not seem to be happening, as we suggested when the fears were first raised.
850,000 Lost and Stolen
MtGox, once the world’s largest Bitcoin exchange, filed for bankruptcy in 2014 after losing 850,000 Bitcoins, valued at $450 million at the time, to multiple hacks and losses. The bankruptcy left approximately 24,000 creditors in limbo, anxiously awaiting the return of their funds.
In the years since, the saga has been marked by legal battles, delays, and complicated bankruptcy proceedings. Kraken and Bitstamp were brought on board months after the hack to help with the rehabilitation process, and, almost a decade later, they are finally distributing funds to MtGox customers.
Kraken CEO Dave Ripley confirmed that Kraken has fulfilled its obligations with regard to MtGox creditors:
1/ @krakenfx has successfully distributed #Bitcoin and Bitcoin Cash from the @mtgox estate back to creditors.
It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty. pic.twitter.com/ptKexzN4gm
— Dave Ripley (@DavidLRipley) July 23, 2024
Additionally, Bitstamp has also received some $130 million worth of bitcoins, which it expects to distribute soon.
Receipt of Coins Hasn’t Led to Sales
While many have long suspected that the return of such funds would precipitate a mass selloff, this doesn’t seem to have been the case. While the price of Bitcoin has dropped $5,000 during the Kraken payout process, Cryptoquant CEO and Founder Ki Young Ju revealed that no unusual selling activity has taken place:
Mt. Gox creditors received #Bitcoin 4 hours ago.
There has been no significant spike in hourly spot trading volume dominance or $BTC outflows on Kraken since then.
We need to wait for the Asian time zone, but it’s a positive sign so far. pic.twitter.com/xxGSiYt33I
— Ki Young Ju (@ki_young_ju) July 23, 2024
This lack of sales is not a surprise, given that holders are only receiving a quarter of their actual holdings at the time of the collapse (at best) and many were the OGest of the Bitcoin OGs, so they are unlikely to sell everything the moment it arrives after a decade.
Of course, as usual, the fear of the collapse is what has led to the collapse, not the thing itself.
