After 10 years of waiting, the problems of crypto investors who had their funds stuck in Mt Gox are over as the now-defunct cryptocurrency exchange has announced that it has started repaying its users.
The announcement was made through a notice outlining the ‘Rehabilitation Plan’. This plan, which is being executed through designated cryptocurrency exchanges, aims to provide creditors with a portion of their cryptos in the form of Bitcoin and Bitcoin Cash.
What Happened to Mt Gox?
The initiation of repayment may be Mt Gox’s final swan song. Once the biggest cryptocurrency exchange, it held 70% to 80% of the entire Bitcoin trading volume. However, it has now dived into obscurity.
It all began with a devastating hacking attack, lax security protocols, and downright negligence on the exchange’s part.
It was in 2011 when hackers used stolen credentials to initiate Bitcoin transfers. Blockchain technology was still new, and several deficiencies in the network protocols were found, leading to the loss of many Bitcoins.
The odd part is that the entire ordeal lasted three years. It was only months before February 2014, when investors started to vent their frustrations about not being able to withdraw their funds, that Mt Gox started to examine its security systems more closely.
What they found was expected. Technical bugs were abundant, and even the exchange professionals had difficulties understanding the transaction details.
Mt Gox soon claimed this happened due to a bug in the Bitcoin software that allowed users to alter their transaction IDs. The entire community refuted this, and no further argument was made.
It was soon discovered that close to 850,000 Bitcoins had been lost. Although recovery efforts led to the recovery of 200,000 Bitcoins, the lost BTCs destabilized the market. Unable to cope with the financial onslaught, Mt Gox declared insolvency.
What followed was years of court cases and attempts by the crypto community to get back the asset. It is only just now that people have seen the first sign of hope. However, it may not all be good news for the rest of the crypto community.
Mt Gox Moved 47,228 Bitcoin as Part of the Repayment Process
While this is good news for most crypto investors, especially early traders who had their funds locked up in the now-defunct cryptocurrency exchange, others are worried that this will cause a massive dumping rally.
Willy Chuang, the COO of crypto exchange WOO X, has expressed fear of a large potential sell-off.
Talking to Coindesk, he said, “Mt. Gox moved 47,228 BTC, signaling the start of their repayment process, which has caused some market fear due to the large potential sell-off.”
Despite his short-term fears, he remains hopeful about the future of Bitcoin.
“Despite these concerns, the long-term impact may be less severe as the market gradually absorbs the selling pressure.”
Even though a long-term view of most of the market is bullish, Bitcoin’s recent performance hasn’t been painting a good picture. The world’s leading crypto has dropped to $55k, a 10% drop from last week.
While there are attempts by the community to push the BTC price back to above $60k, it may take time for Bitcoin to reclaim its recent highs.
Meanwhile, investors looking for better investment opportunities should check out presales instead.
Best Presale Cryptos to Buy Since Bitcoin is Down
PlayDoge and Base Dawgz are two of the best presale tokens to buy this year. These unique meme coins are bursting with potential thanks to their unique imagery and exciting use cases.
PlayDoge
Those looking for a meme coin with an 8-bit artwork and a P2E game reminiscent of the old Tamagotchi titles should consider investing in PlayDoge.
The project has generated a lot of interest with its intriguing theme, which is to revive the Tamagotchi genre with blockchain technology. Stakes are raised as raising the PlayDoge pets will now involve a monetary element. There will also be mini-games to level up these pets and enhance the rewards.
The project has been well received by the community, as evidenced by its presale, which has raised more than $5.3 million to date.
Crypto YouTuber Cryptonews has applauded the token’s passive income opportunities and long-term prospects.
Currently, it is available at a discount price of $0.00515. Those interested should act now before the price increases.
Base Dawgz
Base Dawgz is a presale token that taps into the Base meme coin narrative to grow in value. Even though developed on Base, it is a multichain asset capable of traversing through five different blockchains, namely Solana, Binance Smart Chain, Ethereum, Avalanche, and Base.
It is also a dog-themed token, but its appeal lies in mirroring the degen nature of the community through its image of a base jumping Shiba Inu.
Due to its immense potential, 99Bitcoins, a leading crypto YouTube channel, has named it the next 100x gem.
Those interested can visit its official website to participate in the presale.
