Kraken, a prominent cryptocurrency exchange, recently expressed gratitude to numerous Mt. Gox creditors for opting to use its platform in anticipation of reimbursement. In a recent development indicating imminent payments, Kraken confirmed that 140,000 Bitcoins, valued at $7.2 billion, will soon be apportioned among roughly 10,000 creditors globally. This move marks a significant step in resolving the fallout from the famous Mt. Gox bankruptcy.
Kraken’s Expresses Appreciation to Mt. Gox Creditors
A substantial number of Mt. Gox creditors have designated Kraken as their exchange of choice for receiving Bitcoin distributions. Despite funds not yet being disbursed, Kraken issued a statement acknowledging the selection made by these creditors and assured that their accounts were in good standing with no immediate actions required. The exchange promised to provide further updates as the distribution process progresses.
While the precise timing for the distribution remains unknown, the identification of a destination for the funds suggests that the process may commence shortly. Speculation exists that approximately 30% of the creditors may choose to liquidate their holdings once received.
Potential Market Impact and Exchange Ranking Changes
The potential market impact of these sales is uncertain. Given the extended duration of the Mt. Gox case, spanning 11 years, it is not widely anticipated that the 42,000 Bitcoins, which could equate to $2 billion, will be sold immediately, especially amidst expectations of a Bitcoin price increase.
Creditors also have the option to diversify into other cryptocurrencies such as Ethereum and major altcoins, or to invest in spot Bitcoin ETF trading. Kraken’s increased usage by creditors could elevate its status among cryptocurrency exchanges and may even contribute to rumors regarding the exchange’s potential public listing, which would be a noteworthy event for Wall Street.
