Mt Gox Bantah Rumor Will Dump Bitcoin

JAKARTA Japan-based crypto trading company Mt Gox has denied rumors that it would conduct a massive dump. The rumor stated that Mt Gox would distribute hundreds of thousands of Bitcoins to creditors.

In fact, Mt Gox plans to pay in stages in installments. However, the company admits it has not announced an official schedule to start payments in BTC to creditors.

According to Eric Wall, Mt. Gox's creditor, who confirmed that a new report circulating that 1370,000 BTC sent to creditors will soon be dumped in the market is fake. In a recent Twitter thread, Wall said the retrial payment system had not yet aired.

When discussing rumors circulating across social media channels, former CIO at Oslo-based crypto investment firm Arcane Assets said payments would also occur in stages over months instead of lowering thousands of BTC at once, sparking dumping concerns.

Repayment is also expected to be made through an approved crypto exchange, whose name has not yet been released. Creditors also added that even though the market is not profitable at this time, they prefer to buy if Bitcoins are released instead of selling them.

The Mt. Gox boom started almost a decade ago, when Mt. Gox suddenly stopped its operations amid revealing its involvement in the theft of hundreds of thousands of Bitcoins. What happened later was a long legal procedure.

Earlier this year, Nobuaki Kobayashi from Mt. Gox revealed that he was preparing to facilitate payments back to creditors. Documentation on July 6 declared late August a reference period for early payments of funds.

"The Limiting Reference Period from around the end of August this year until all or some of the retrial payments made as an initial payment are complete for a safe and secure Repayment," Kobayashi said, quoted by CryptoPotato.

Rumors circulating on social media related to Mt. Gox, which will release 137,000 Bitcoins to creditors, will then be sold on a large scale is another form of the FUD (fear, uncertainty, double). That was denied by Mt. Gox himself. If the payment is made at once, it will most likely affect the price of BTC. As is known, currently the Bitcoin harg is struggling to move in the range of 20,000 US dollars per coin.