Mt. Gox to recover funds after more than 10 years: Should investors be worried?
Mt. Gox, a Japanese-based bitcoin exchange, is set to recover some of the funds lost in a hacking incident more than a decade ago. The exchange lost over 850,000 bitcoins in 2017, but was able to recover over 142,000 BTC and 143,000 Bitcoin Cash (BCH) and more than 6.9 billion yen, which accounts for around 20% of the total amount lost.
Reports indicate that the “rehabilitation plan” will give creditors several options for repayment, including the choice to receive funds in either fiat or cryptocurrency. Despite concerns that an influx of bitcoin onto the market could impact its value, analysts believe that many investors who receive their funds will likely hold onto their bitcoin.
While this news may be concerning for some investors, it is important to note that the recovered amount is relatively small when compared to the current size of the bitcoin market. Additionally, many investors who held their funds with Mt. Gox are likely to continue to hold onto their bitcoin, which could limit the impact on the market.
However, it is still unclear when and how much money will be recovered, and the possibility of a flood of bitcoin hitting the market could still impact its value. It is important for investors to remain cautious and keep a close eye on market developments.
In conclusion, while the recovery of funds by Mt. Gox is a positive development, it is important for investors to remain cautious and monitor market developments closely. While an influx of bitcoin onto the market could impact its value, it is likely that many investors who receive their funds will continue to hold onto their bitcoin, which could limit the impact on the market.
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