Mt. Gox Trustee’s Bitcoin Sale Didn’t Impact Market
About 10 days ago, the news broke that the reason the price of Bitcoin had be spiraling downwards was because of “panic” selling by a Mt. Gox trustee. Multiple news outlets reported that Nobuaki Kobayashi, one of the trustees of the now bankrupt Mt. Gox, sold more than 35,000 Bitcoin (BTC) worth more than $400 million as well as 34,000 Bitcoin Cash (BCH) in order to pay the crypto exchange’s creditors.
These transfers were confirmed by ex-Mt. Gox CEO Mark Karpeles to have taken place between September last year and February this year. Additionally, a report released on March 7 earlier this month stated that these sales occurred in the time between the two creditors’ meetings in September 2017 and March 7, 2018.
These sales were done through an exchange, and it appeared that both transactions pulled the markets lower. The markets basically got flooded with BTC and BCH, which led to slumps..
Last night, Cointelegraph reported breaking news that Kobayashi had spoken up about the sales and that new reports had been released with regard to when these sales took place. He said that he does not believe the sale of the BTC and BCH held in trust by him had any impact on the market.
Kobayashi stated that he sold the BTC and BCH only after consulting with crypto experts. The sales were made through BTC and BCH exchanges but in a way that ensured that market prices would not be impacted by the volumes. It also ensured that security of the transaction was maintained as much as possible.
The Trustee stated that the cryptocurrencies he held were sold at a fair market price and the timing of each sale was in consultation with the court. He also said that each of the cryptocurrencies were sold separately.
Additionally, data from the report released yesterday showed that these sales actually took place between December 2017 and January 2018.
Kobayashi said that there was firm date about when the rest of the BTC and BCH would be sold.
Cointelegraph analyzed the market data on the days that the sales had been made, and, contrary to popular belief that Kobayashi’s sale of the cryptocurrencies had caused a downslide, data actually showed a negative correlation between the two.
Despite data to prove otherwise, the news that Kobayashi sold such huge volumes of BTC and BCH has become a hotly debated topic, with both sides arguing for and against the Trustee’s actions.