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Mt. Gox About to Dump $9 Billion in Bitcoin: What This Means for BTC
Omer Taha Cetin | Anadolu | Getty Images
A Bitcoin The exchange that collapsed 10 years ago after being hacked is poised to return billions of dollars in tokens to users, and that has investors worried.
In a few days, the bankrupt Tokyo-based bitcoin exchange Mt. Gox will begin refunding nearly $9 billion worth of tokens to thousands of users. The platform went bankrupt in 2014 following a series of robberies which cost him in the order of 650,000 TO 950,000 bitcoin, or over $59 billion, at current prices.
The payment came after a lengthy bankruptcy process, which involved numerous delays and legal actions.
On Monday, the court-appointed trustee overseeing the stock exchange’s bankruptcy proceedings She said Distributions to the company’s roughly 20,000 creditors will begin in early July. The disbursements will be in a mix of bitcoin and bitcoin cash, an early offshoot of the original cryptocurrency.
While this is good news for hacking victims who have spent years waiting for compensation, Bitcoin price dropped to $59,000 last week, in the cryptocurrency market second worst weekly decline of the year.
CNBC spoke to half a dozen analysts to find out what to expect when about 141,000 bitcoins, or about 0.7% of the 19.7 million bitcoins in circulation, are returned to Mt. Gox victims this week.
Pressure on Bitcoin May Increase
Mt. Gox, short for “Magic: The Gathering Online Exchange,” was once the world’s largest bitcoin exchange, claiming to handle about 80 percent of all global dollar-to-bitcoin transactions.
When it closed its doors in February 2014, bitcoin was worth approximately 600 dollars.
As of Monday, the world’s largest cryptocurrency is trading at around $62,000 per coin. That means users who choose to be reimbursed in kind — in the cryptocurrency itself, rather than the cash equivalent — have seen the value of their coins increase by more than 10,000% over the past decade.
John Glover, chief investment officer at cryptocurrency lending firm Ledn, told CNBC that the windfall for Mt. Gox users would likely translate into massive sell-offs of bitcoin as investors look to lock in gains.
“A lot of people are clearly going to cash in and revel in the fact that having their assets tied up in the Mt. Gox bust was the best investment they ever made,” said Glover, who was previously a Barclays chief executive. “Some are clearly going to take the money and run,” Glover added.
James Butterfill, head of research at CoinShares, told CNBC that the nearly $9 billion glut of bitcoin set to be released “has long been a cause for concern for those who are bullish on bitcoin.”
“As a result, the market is highly sensitive to any related news. With the announcement that the Trust will begin selling in July, investors are understandably concerned,” Butterfill said.
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It wouldn’t be the first time bitcoin has moved in response to large redemptions of funds locked away on centralized trading platforms.
Last month, cryptocurrency exchange Gemini returned more than $2 billion worth of bitcoin to users with funds stuck in its Earn lending program, marking a 230% recovery after bitcoin prices more than tripled since Gemini suspended Earn withdrawals on Nov. 16.
JPMorgan analysts have linked this to the negative price action, saying in a research note last week that it is “fair to assume that some Gemini lenders, who are mostly retail clients, have realized at least partial profits in recent weeks.”
Analysts predict that Mt. Gox customers will be equally willing to sell some of their bitcoin to profit from the cryptocurrency’s huge gains.
“Assuming that most of the liquidations by Mt. Gox creditors occur in July, [this] “creates a trajectory where cryptocurrency prices experience further pressure in July, but begin to recover from August onwards,” they wrote.
Separately, last month, the German government sold 5,000 bitcoins (worth about $310 million at Monday prices) from a pile of 50,000 bitcoins seized in connection with the Movie2k movie piracy operation.
The funds were reportedly sent to various cryptocurrency exchanges, including Coinbase, Kraken, and Bitstamp. Blockchain intelligence firm Arkham Intelligence.
Analysts say these cryptocurrency liquidations have also put pressure on the price of bitcoin.
Mt. Gox Customers Should Hold Their Bitcoin
Most analysts agree that bitcoin’s losses will likely be small and short-lived.
“I think the sell-off concerns around Mt. Gox are likely to be short-term,” said Lennix Lai, chief commercial officer at cryptocurrency exchange OKX.
“Many of Mt. Gox’s early adopters, as well as lenders, are long-time bitcoin enthusiasts who are less likely to immediately sell all their bitcoin,” he said, adding that previous sales by law enforcement, including the case of the Silk Roaddid not cause a catastrophic and lasting drop in prices.
Butterfill speculated that there is enough market liquidity to cushion the blow of a potential mass sell-off.
“Bitcoin has maintained a daily trading volume of $8.74 billion on reputable exchanges this year, suggesting that there is sufficient liquidity to absorb these sell-offs during the summer months,” Butterfill said.
According to Jacob Joseph, research analyst at CCData, the markets are more than capable of absorbing the selling pressure.
“Furthermore, a good portion of lenders are likely to take a 10% haircut on their bonds to receive early repayment, and not all bonds are set to be liquidated on the open market, reducing overall selling pressure,” he said.
Recent price movements suggest that the temporary impact of the Mt. Gox refunds may have already been priced in, Joseph added.
Alex Thorn, head of research at Galaxy Digital, believes that fewer coins will be released than expected, which means there will be less selling pressure than the market expects.
However, he also wrote in May that even if only 10% of the bitcoins distributed were sold, it would “have an impact on the market.”
“Most individual lenders will deposit their coins directly into a trading account at an exchange, making it extremely easy to sell,” Thorn said.
Vijay Ayyar, head of consumer growth for Asia-Pacific at cryptocurrency exchange Gemini, said the overall impact of the Mt. Gox disbursement will likely be “dissipated” given that the recipients of the funds are varied.
On the one hand, there are the individual holders who will receive their bitcoins right away. Then there is the “significant amount” of bitcoin that will be disbursed to the compensation funds, Ayyar said.
“Those funds should then be distributed to their LPs. [limited partners]so the whole process could take some time, adding a time factor to the price impact,” he told CNBC.
Macroeconomic Headwinds Behind Bitcoin’s Fall
It is worth noting that there are many other reasons behind the recent declines in bitcoin.
The cryptocurrency had a surprising rally earlier this year, rising above $70,000 in the wake of the U.S. Securities and Exchange Commission’s approval of the first spot bitcoin ETF.
Stock chart iconStock chart icon
Bitcoin price performance in US dollars, year to date.
But investors remained anxious amid outflows from bitcoin ETFs and significant market liquidations. The broader macro environment also worried investors.
Earlier this month, the Federal Reserve hinted that it would cut rates just once this year, compared to several previously indicated reductions.
Cryptocurrencies, which are inherently volatile, are particularly sensitive to changes in the interest rate environment.
CoinShares’ Butterfill said the Fed’s new rate forecast was “a likely culprit in the recent price decline” of bitcoin.
This, along with other issues, “will likely weigh on prices in the lower-volume summer months,” Butterfill said. However, “the fundamental investment case remains very much intact,” he added.
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As the cryptocurrency market continues to expand, investors are constantly looking for new opportunities to maximize their returns. Pepe (PEPE), a meme coin inspired by the iconic Internet character Pepe the Frog, has been a staple in the meme coin arena. However, recent developments have shifted some investors’ attention to a promising new competitor: MPEPE (MPEPE). Currently trading at $0.0007, Mpeppe is attracting significant interest from those looking to diversify and capitalize on the next big thing.
Pepe’s appeal (PEPE)
Pepecoin (PEPE) has carved out a significant niche for itself in the cryptocurrency market, largely due to its vibrant community and roots in internet meme culture. Drawing inspiration from the popular meme character Pepe the Frog, Pepe (PEPE) has captured the attention of cryptocurrency enthusiasts and meme enthusiasts alike. This fusion of humor and community spirit has been instrumental in its rise within the cryptocurrency space.
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Mpeppe (MPEPE): the rising star
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A large ecosystem
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Investment Potential of Mpeppe (MPEPE)
Strategic Tokenomics
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Analysts’ optimism
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The impact of similar competing businesses
Driving Innovation
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Market diversification
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The Future of Mpeppe (MPEPE)
Strategic development
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Community Growth
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Conclusion: A New Horizon for Meme Coin Investors
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- The Golem project has moved over $124 million in ETH for staking.
- Ethereum staking frenzy has increased ahead of the launch of spot ETH ETFs in the US.
Ethereal [ETH]The Project Golem-based distributed computing marketplace has joined the ETH staking frenzy.
On July 11, contrary to its recent sell-off, the company reportedly staked 40K ETH worth over $124.6 million, according to Lookonchain data.
Golem Network has confirmed its Ethereum staking initiative and said its purpose was to “create space” to help participants contribute to the network.
“The Golem Ecosystem Fund is officially launched today! We have staked 40,000 ETH from Golem’s treasury. This will create a space where developers, researchers, and entrepreneurs can bring their ideas to life and contribute to the Golem Network and its ecosystem!”
Ethereum Staking Frenzy
The staking frenzy has infected Ethereum, with just days to go until the potential launch of a spot ETH ETF in the United States. Recently, an unmarked address blocked over 6K ETH.
The Golem project’s decision to lock up 40K ETH on July 11th pushed the total ETH locked up to Chain of lights at an all-time high of 47.5 million ETH, worth over $140 billion based on market prices at press time.
Beacon Chain is Ethereum’s system that manages the validation of new blocks.
Source: Etherscan
According to a recent AMBCrypto relationshipIncreased ETH staking ahead of the debut of the ETH spot ETF in the US has underscored bullish sentiment.
More ETH has been moved from exchanges, further strengthening bullish expectations.
Meanwhile, from a short-term perspective, many addresses were losing at the $3.2K and $3.5K levels. Investors could try to take a profit if they break even.
These prices represent key levels to watch in the short term.
Source: IntoTheBlock
Next: Why Bitcoin Must Surpass $61K Soon, According to Analysts
As the cryptocurrency space turns bearish, giants like Chainlink and Fantom are facing setbacks with declining trends for LINK and FTM. Amid these changes, BlockDAG emerges as a prime target due to its promising pre-sales and long-term prospects. This Layer-1 project boasts an innovative Low Code No Code ecosystem, attracting investors with potential ROIs exceeding 30,000x. The pre-sales momentum has already accumulated over $57.6 million, driven by growing investor enthusiasm.
Impact of Chainlink’s Recent Token Release
Chainlink’s recent move to release 21 million LINK tokens, worth approximately $295 million, from its dormant supply contracts has significant market implications. This release sent 18.25 million LINK to Binance, fueling speculation that the price will drop. LINK is currently trading at $13.64, approaching its critical support at $13.5, with the potential to drop to $10 if this level breaks.
These releases, increasing the circulating supply above 600 million LINK, have previously maintained price stability, but the prevailing bearish conditions could alter this trend. With 391.5 million LINK pending release, market caution persists.
Fantom (FTM) Market Position Dynamics
Fantom experienced a strong buying spree last November, but its valuation has been challenging lately. After peaking near $1.20 in March, subsequent resistance and profit-taking pushed its price lower. FTM recently dipped below the crucial $0.600 mark but found some ground around $0.500. Fantom is currently valued at $0.559 with a market cap of $1.67 billion and daily trading volume of $257.56 million.
The Fantom Foundation’s decision to award over 55,000 FTMs quarterly to major dApps on the Opera network has invigorated user participation. Indicators such as RSI and MACD suggest a possible bounce if it surpasses the $0.600 mark. Failure to break above the 200-day EMA could prolong the bearish outlook.
BlockDAG Pre-Sale Triumph and Innovative Platform
BlockDAG’s pioneering low-code/no-code platform enables the seamless creation of utility tokens, meme tokens, and NFTs, catering to a broad user base. Its intuitive templates allow enthusiasts to quickly launch and customize projects, thereby democratizing blockchain development and accelerating market entry.
The cutting-edge features of this platform have attracted cryptocurrency investors, significantly increasing the interest in the presale. BlockDAG has successfully raised over $57.6 million, witnessing a 1300% escalation in the coin’s value from $0.001 to $0.014 in its 19th batch. This impressive rise underscores the immense return potential of BlockDAG for early backers.
Additionally, BlockDAG’s commitment to expanding its ecosystem extends to supporting the development of decentralized apps. This fosters a wide range of new projects in the blockchain domain, from digital art platforms to tokenized assets, enriching the blockchain ecosystem.
Key observations
While Chainlink and Fantom are currently navigating bearish trends due to token releases and resistance hurdles, BlockDAG’s innovative low-code/no-code framework positions it as an attractive investment option. With a presale raise of over $57.6 million and prices skyrocketing 1300% in recent batches, BlockDAG shows tremendous potential for returns of up to 30,000x. Amidst the market volatility impacting Chainlink Tokens and Fantom, BlockDAG stands out as a promising avenue for cryptocurrency traders.
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Disclaimer: The statements, views and opinions expressed in this article are solely those of the content provider and do not necessarily represent those of Crypto Reporter. Crypto Reporter is not responsible for the reliability, quality and accuracy of any material in this article. This article is provided for educational purposes only. Crypto Reporter is not responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Do your own research and invest at your own risk.
The DEX aggregator Anger Trading is about to issue its RAGE token on the new Layer 1 blockchain Hyperliquid. The token sale is scheduled for August 7, with 20 million tokens out of a total supply of 100 million available on Fjord Foundry at a fixed price of $0.30.
Additionally, the “Rage Quit” feature has been introduced, which allows private investors to get their allocation early by accepting a 60% cut.
RAGE will be among the first tokens to be launched on Hyperliquidmarking a significant moment for this new blockchain. Let’s see all the details below.
DEX News Rage Trade: New RAGE Token Arrives on Hyperliquid
As expected, decentralized exchange (DEX) aggregator Rage Trade has announced the issuance of its new token ANGER. The launch is happening through a liquidity generation event and token sale on Fjord Foundry, scheduled for August 7th.
The token will be launched on the newly launched layer 1 blockchain Hyperliquidwhich has rapidly gained popularity due to its decentralized perpetual exchange.
Rage Trade currently aggregates platforms such as GMX, Synthetix, Dydx, Aevo and Hyperliquid, allowing traders to manage their positions across multiple blockchains and earn incentives.
During the event, 20 million RAGE tokens will be sold at a fixed price of $0.30, while another nine million will be used to inject liquidity into Hyperliquid.
Additionally, six million tokens have been reserved for future market making and product development incentives.
The token will have a total supply of 100 million, with 20% earmarked for sale and 30% for community treasury. The latter is subject to a 12-month lock-up period and a 24-month linear release.
The “Rage Quit” feature introduces a deflationary mechanismThis allows private investors and recipients of the air launch to receive their assignment after an initial three-month stalemate, accepting a 60% cut.
Rage Trade has chosen Hyperliquid as the platform for its token after the network became the preferred choice of users of the Anger Aggregatorwith over 1,300 users generating $445 million in volume.
Hyperliquid surpasses dYdX in TVL
Hyperliquid, the exchange decentralized based on Referee, recently introduced a new points program, which has catalyzed significant growth in total value locked (TVL) on the platform.
According to data from DefiLlama, Hyperliquid has reached a TVL of $530 million, surpassing dYdX’s $484 million and reaching a new all-time high.
This figure places Hyperliquid in second place among derivatives platforms, just behind GMX, which maintains a TVL of $542 million.
Rounding out the top five platforms by TVL are Solana-based Jupiter with $415 million and Drift with $365 million. Hyperliquid had a stellar year in 2024, jumping from eighth to second place in just six weeks.
This rapid increase was largely attributed to the new Hyperliquid points program, which launched on May 29.
The points program provides for the distribution of 700,000 points weekly for four months. With an additional 2 million points awarded for activity between May 1 and May 28.
Despite community criticism over the decision to extend the incentive program and delay the token launch and airdrop, the platform has continued to attract numerous traders.
From Perpetual DEX to Layer 1
Steven, founding member of Capital Yuntwhich has backed some of the largest cryptocurrency firms, including Zerion, noted that Hyperliquid has distributed approximately 51 million points in four periods.
He further stressed that the project aims to reward its early adopters and move from simply being a perpetual DEX to a true Layer 1:
“The team is clearly making an effort to communicate that Hyperliquid is an L1 and not just a DEX for derivatives.”
Furthermore, he highlighted that the token holders PURSUE were significantly rewarded, with a 23% increase in the token’s value.
PURR was the first spot token launched on Hyperliquid and looks set to continue receiving attention and incentives from the platform.
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