“Mount Gox redemption BTC decreases by up to 11% depending on early redemption conditions”
Complex repayment debt direction and creditor situation pointed out... “There are no large hawks.”
);)
Alex Thorne, a digital asset (cryptocurrency) expert, argued in a YouTube podcast on the 1st that “the repayment of Mount Gox will not have a significant impact on the market.”
Mt. Gox is a digital asset exchange established in Japan and is the world's largest exchange, responsible for 70% of global Bitcoin transactions. After suffering a large-scale hacking in 2014, it went bankrupt due to failure to compensate for the stolen digital assets. Last year, Mt. Gox announced that it would begin repaying debts to creditors through bankruptcy procedures, and last week suddenly announced, "We will begin repaying creditors for about three months from early July."
The amount that Mt. Gox announced for repayment is 142,000 Bitcoin, 143,000 Bitcoin Cash (BCH), and 69 billion yen in fiat currency.
In May, Mt. Gox transferred a total of approximately 141,686 bitcoins to three wallets. After Mt. Gox announced last month that it would repay its creditors, fears arose both inside and outside the market that a large sell-off would occur due to Mt. Gox's repayment, causing the market to plummet.
Thorn explained the 'early debt repayment plan' presented by Mt. Gox to creditors on the basis that Mt. Gox's repayment would have little impact on the market. According to Thorn, Mt. Gox requested a debt discount of about 10-11% only for creditors who receive priority repayment. It is analyzed that about 75% of Mt. Gox creditors accepted this, and the number of Bitcoins repaid also decreased to about 94,600.
Thorn went on to claim that many Mt. Gox creditors sold their debt claims at a discount to large funds, and that the amount of Bitcoin sold in that way was approximately 20,000. Thorn explained, “About 20,000 of the Mt. Gox redeemable bitcoins are held by the fund, so the amount that will be poured into the market in the short term is reduced to about 74,000.”
Thorne emphasized that many of the Mt. Gox bonds were sold to various companies, including liquidity providers, and that the complex structure of the Mt. Gox bonds would significantly reduce the volume coming to the market. He said, “Depending on the various interests surrounding Mt. Gox bonds, including liquidity providers, creditors want to sell Bitcoin at a high price, and as such, they will not immediately pour out repayment volume into the market.”
Thorne claimed that Mt. Gox's main creditor, digital asset exchange Bitcoinica, was in the process of bankruptcy and that the repaid amount could not be sold immediately. He said, “Bitcoinica is going through bankruptcy proceedings in a New Zealand court, and the repaid amount cannot be sold directly on the market without a court order.”
Thorn emphasized, “Even if Mt. Gox’s repayment begins, there will not be a large-scale sell-off, and even if a sell-off occurs, it is expected to be much smaller than the headlines currently circulating in the news.”
Reporter Seungwon Kwon ksw@
