Mt. Gox Rehabilitation Plan Now Binding: Crypto Proponents Deny Major Bitcoin Price Impact
Reimbursing bitcoin investors who had their BTC in Mt. Gox before the infamous hack back in the day has been one of the most commonly discussed and hot topics throughout the past few years.
What was once the biggest cryptocurrency exchange was hacked back in 2014, and 7 years later, the rehabilitation plan for creditors is now ‘final and binding.’
Mt. Gox Rehabilitation Plan Now Final
As CryptoPotato reported earlier in October, approximately 99% of the voting rehabilitation creditors approved a plan to reimburse investors for what they lost during the 2014 hack.
Now, in a new announcement, it was made clear that said rehabilitation plan has been made ‘final and binding.’ There’s no date set in stone about when the creditors will be able to receive the lost BTC and whether or not they will receive it in bitcoin or in USD. However, the latest announcement reads that:
The Rehabilitation Trustee will then make repayments to rehabilitation creditors holding allowed rehabilitation claims in accordance with the Rehabilitation Plan. An announcement will be made to rehabilitation creditors on the details of the specific timing, procedures, and amount of such repayments.
All rehabilitation creditors are also going to be required to register their banks account information and other information through the Mt. Gox online filing system, hinting that perhaps they will be reimbursed in fiat rather than in BTC. This, however, isn’t yet known.
In any case, this seems to be amongst the final steps necessary for creditors to be able to receive a reimbursement and the market appears to be shaky, anticipating a potential sell-off once creditors get paid, assuming they do get paid in BTC.
“Any BTC Dip Will Get Instantly Bought”
Naturally, one of the biggest questions that the community debates is what will happen to bitcoin’s price once all that BTC gets returned (assuming it’s reimbursed in BTC and not in fiat).
We reached out to a few proponents from the cryptocurrency community to pick their brains on the matter and see what they think of the potential market impact. Most of them aren’t really worried.
Well-known Bitcoin bull and long-term supporter Max Keiser confirmed that he had some BTC at Mt. Gox. He also said that he doesn’t “think the 150K (BTC) will have much of an impact. The demand for Bitcoin is exploding. Any price dips will get instantly bought.
Kenzi Wang, the co-founder of Hyperedge Capital and Cere Network, also doesn’t think there will be a serious impact because the event has already been priced in the market.
Personal opinion here is that this is already priced in the market just like some older news like the Bitcoin option expiry. The market’s bullish sentiment consumes this type of events quite nicely.
We also got to Jehan Chu, Co-Founder and Managing Partner at Kenetic Capital, who noted:
While the sizable Mt. Gox distribution may create volatility and short-term selling pressure, long-term fundamental growth and institutional adoption of BTC make this nothing more than a speed bump on the way to the digital economy.
The Vice President of business development at the asset management company LedgerPrime, Ayesha Kiani, said that the event “is not even much of a discussion point” because of the long lockup period. She also remarked that the market is “definitely anticipating it.”
Adam Back: Selling 0% Bitcoin
Another interesting angle brought up by a Twitter poll raises the question if selling is even up to debate at all.
Brad Mills did a survey across Mt. Gox creditors and came to the conclusion that “the majority of Mt. Gox creditors plan on keeping all of the BTC they get back from Mt. Gox.”
I did a survey in the MtGox creditors group.
The majority of MtGox creditors plan on keeping *all* of the BTC they get back from MtGox.
The majority of the MtGox creditors plan on selling *all* of the BCH they get back from MtGox.#Bitcoin pic.twitter.com/mYVEIjKeAJ
— Brad Mills
#FreeRoss (@bradmillscan) November 13, 2021
The same poll also revealed that most of the creditors, however, plan on selling the BCH they have as a result of the network’s fork.
Adam Back, Co-Founder and CEO at Blockstream, confirmed the results from his perspective:
Can confirm: selling 0% BTC. But on BCH in fact once there’s a date fixed, I figure I can short-sell BCH before it’s released by Mt. Gox bankruptcy administrators to get a better price before it’s crushed by a wave of selling 🙂 – He said.
OhNoRipple via https://www.ohnocrypto.com/ @George Georgiev, @Khareem Sudlow