Mt. Gox Trustee Confirms Liquidation of $230 Million Worth of Bitcoin and Bitcoin Cash

Siamak Masnavi

On Tuesday (25 September 2018), Nobuaki Kobayashi, the trustee of now-defunct crypto exchange Mt. Gox, confirmed via a statement that he had liquidated around $230 million worth of Bitcoin (BTC) and Bitcoin Cash (BCH) in the most recent round of sales.

As you probably already know, Mt. Gox was a Bitcoin exchange in Tokyo, Japan founded in 2010. By the beginning of 2014, it was handling around 70% of all Bitcoin transactions worldwide. Then, in February 2014, Mt Gox. suddenly stopped trading, and declared bankruptcy.

According to Reuters, on 28 February 2018, the exchange filed for bankruptcy protection, claiming that it had been hacked, and that it had "lost 750,000 of its users’ bitcoins and 100,000 of its own." At that time, one BTC was worth around $565, which means that the exchange had suffered a loss of around $480 million.

At a press conference held at Tokyo District court on 28 February 2018, the company's CEO, Mark Karpeles said:

"We had weaknesses in our system, and our bitcoins vanished. We've caused trouble and inconvenience to many people, and I feel deeply sorry for what has happened."

Yesterday, Japanese lawyer Nobuaki Kobayashi, who is called "Tokyo Whale" by some members of the crypto community because of the multiple rounds of sales of crypto he has overseen since last Autumn as part of the liquidation of Mt. Gox's assets, said in a statement that in order to secure the interests of the company's creditors that he had sold a "a certain amount of" BTC and BCH "during the period from the 10th creditors' meeting in the Bankruptcy Proceedings (ie, from March 7, 2018) to the commencement of Civil Rehabilitation Proceedings," and "secured a certain amount of money for the bankruptcy estate."

In total, 24,658.00762 BTC and 25, 331.00761 BCH were sold during this period, and the total proceeds from the sale was JPY 25,975,702,352 or approximately $230 million. This means the Mt. Gox trustee managed to sell each bitcoin at an average price of roughly $8,100.

According to data from CryptoCompare, at press time, Bitcoin is trading at $6,446, down 0.3% in the past 24-hour period.

Featured Image Credit: Photo via Pexels.com

Gemini CEO Tyler Winklevoss: ‘Bitcoin Is Gold 2.0’

Siamak Masnavi

On Thursday (May 16), Tyler Winklevoss, Co-Founder and CEO of digital asset exchange Gemini, called Bitcoin (BTC) "gold 2.0", and went on to suggest that Bitcoin's market cap had a lot more room to grow based since Bitcoin, or digital gold, is better than physical gold and gold's market cap is around $7 trillion while Bitcoin's market cap is only around $140 billion.

Here is what tweet the Gemini CEO sent out on May 16:

This was not the first time that the Winklevoss twins, who own the Gemini exchange, talked about the advantages of Bitcoin over gold. For example, on Mar 15, Fox Business Network reported that Cameron Winklevoss, who is Co-Founder and President of Gemini, told a crowd at the SXSW 2019 conference:

“The only thing that’s truly precious, in my mind, is bitcoin. If you tell that to someone who’s my parents' age, they’ll probably look at me and tell me I’m crazy, and I’m willing to accept that. But you talk to someone who’s playing Fortnite and say, okay, two options, bar of gold or the equivalent in bitcoin, they are 10 times out of 10, 100 times out of 100, going to take the bitcoin. They want software, they don’t want hardware.”

Tyler's tweet received some interesting replies:

  • Tuur Demeester, Editor in Chief at Adamant Research & Founding Partner at Adamant Capital:
  • Mati Greenspan, Senior Market Analyst at social trading platform eToro: 
  • Vijay Boyapati:

Vijay, who is the author of the very popular four-part Medium article "The Bullish Case for Bitcoin", has also said that "Bitcoin is like gold but with this magical ability that you can teleport it.” Vijay's tweet refers to the following table:

BTC vs. Gold vs. Fiat.png

A couple of other examples of prominent members of the crypto community who seem to agree with the Winklevoss twins about Bitcoin being better than gold are:

  • Barry Silbert, the Founder and CEO of incubator and venture capital firm Digital Currency Group (DCG), the parent company of Grayscale Investments, which launched its #DropGold campaign on May 1:
  •  Mike Novogratz, the CEO of Galaxy Digital, who said in a recent interview with Anthony Pomplianao (aka "Pomp") on the "Off The Chain" podcast:

"Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily."

 

Featured Image Credit: Photo via Pixabay.com