Former customers of the collapsed Mt. Gox bitcoin exchange will finally start getting their tokens back within days, which is fantastic news for them but could be a problem for other investors. The exchange shut down in early 2014 after multiple massive thefts and creditors have been waiting for more than a decade to be repaid. During that time, the value of bitcoin has surged more than 10,000%. Analysts say that with customers due to receive 140,000 bitcoins worth around $9 billion, an immediate sell-off could drive prices down, reports Quartz.
“Many will clearly cash out and enjoy the fact that having their assets stuck in the Mt. Gox bankruptcy was the best investment they ever made,” John Glover, chief investment officer of crypto lending firm Ledn, tells CNBC. Bitcoin was worth around $600 when Mt. Gox collapsed. It surged to a record high above $70,000 earlier this year but recently dipped to just below $60,000. As of Monday afternoon, it had rebounded to over $63,000.
“Some will clearly choose to take the money and run,” Glover says. Analysts say any dip in prices this month is likely to be short-lived—and not everybody will be in a rush to sell their tokens. “Many of Mt. Gox’s early users as well as creditors are long-term bitcoin enthusiasts who are less likely to sell all of their bitcoin immediately,” Lennix Lai, chief commercial officer of crypto exchange OKX, tells CNBC. (More Mt. Gox stories.)
