The trustee of the hacked Bitcoin exchange Mt. Gox is set toby the end of October 2023. If that happens, the cryptocurrency market could be significantly affected in several ways, some industry observers agree.
As the current Mt. Gox repayment deadline is scheduled to occur in roughly three months, Cointelegraph has reached out to some crypto executives to find out what to expect from the anticipated Mt. Gox repayment.The repayment of Mt. Gox will be a unique event, which is certain to have a significant impact on the market, WhaleWire founder and CEO Jacob King believes.
“This influx of sell orders could create a downward pressure on prices and potentially lead to a market downturn,” he said. King also mentioned multiple prolonged delays in the Mt. Gox repayment process, which has already caused a sense of “disillusionment among investors, eroding their confidence in the market.”“It’s a simple question of, what will the investors do? Over the last year, we’ve seen more sells than buys, and many of those who lost on Mt. Gox have moved on past crypto.
A security breach in 2014 made Mt. Gox lose 850,000 BTC — or 4% of all Bitcoin that will ever be issued. The exchange is now closed and it is one of the biggest cryptocurrency bankruptcies ever, with creditors still waiting for repayment, nine years later.