Mt. Gox, the defunct Bitcoin exchange, has been making headlines with news pertaining to its civil rehabilitation proceedings. Now, the exchange is back in the spotlight after WizSec Bitcoin Research released a report on the entire Mt. Gox – CoinLab “behind the scene” story.
The report titled ‘CoinLab v Mt. Gox: The imaginarium of Peter Vessenes,’ gives insight into the $16 billion claims made by the firm. Kim Nilsson, a researcher at WizSec, “acquired a copy of the last round of petitions to the Tokyo District Court”. The report revealed that the civil rehabilitation trustee, Nobuaki Kobayashi, decided to delay proceedings due to the ongoing case with CoinLab, stating that it was “the elephant in the room causing this delay”.
The report stated that CoinLab “steadfastly refused” to lower the amount claimed, adding that it was “now almost two and a half times as large as the sum total of all approved claims combined”. It further stated,
“Basically, if you had bitcoin in MtGox you’ve already lost 80%+ of your money, and now CoinLab is doing their best to finish the job.”
Apart from these claims, CoinLab also demanded that Mt. Gox cover its legal fees. However, this was outrightly dismissed by the Trustee as he asserted that the claims should be “assessed as 0 JPY” and that the firm should cover its own legal fees.
Further, the Trustee also considered the claims and the calculation behind the claims to be “impossible” and “completely groundless”. More so, according to the calculation made by the Trustee, CoinLab’s claims close down to $6,100,000 [Six million, one hundred thousand], “suggesting that CoinLab’s figure for the same time period was 40 times too large”.
The report concluded,
“To continue to argue this frivolous claim at the direct expense of tens of thousands of people who actually lost their own money is utterly shameless. Peter Vessenes and anyone currently associated with CoinLab are blatantly trying to rob honest creditors and deserve to be publicly shamed until they do the right thing and drop this claim.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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