Kraken today sent out emails to a large number of Mt. Gox creditors thanking them for choosing the exchange. This development is an indicator that payments to the creditors of the bankrupt exchange will gradually begin. Accordingly, 140,000 Bitcoins worth $7.2 billion will be distributed to approximately 10,000 creditors worldwide.
Kraken Exchange Issues Statement
Many creditors have chosen the cryptocurrency exchange Kraken to receive their Bitcoins. It is understood from the exchange’s statement that the funds have not yet reached them. Kraken makes the following statement regarding the creditors who have chosen them:
“We have received notification from the trustee that you have chosen Kraken as the exchange for the Mt. Gox distribution. We thank you for choosing Kraken. We confirm that your account is currently in good standing and there are no further actions to take with Kraken at this time. We have informed the trustee accordingly. We will share more information as the funds reach us.”
Mt. Gox victims do not yet know when the actual distribution will take place. However, since the exchange has now determined the address where the funds will be sent, it is highly likely that this will happen very soon. Estimates suggest that 30% of the creditors could sell immediately.
If Creditors Sell
Since the funds have not yet been distributed, no sale has taken place. However, it is not very likely that the estimated 42,000 Bitcoins worth $2 billion that could be sold by creditors will be sold immediately, given that the Mt. Gox incident has been an 11-year process. This is because we have entered a period where expectations for a rise in Bitcoin prices have peaked.
On the other hand, there are different opinions that creditors could put their assets into spot Bitcoin ETF trading. Additionally, some investors may diversify their assets by entering Ethereum and other major altcoins.
Lastly, the creditors’ preference for the cryptocurrency exchange Kraken could potentially move the exchange up in the rankings of cryptocurrency exchanges. There are also rumors about Kraken going public. If such a development occurs, it could be one of the biggest events on Wall Street.
