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Mt. Gox tale back with a new twist with the ingress of CoinLab

Priya

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Mt. Gox tale back with a new twist with the ingress of CoinLab
Source: Unsplash

Mt. Gox, a cryptocurrency exchange popular for its heist, is back in the limelight with a new twist in the civil rehabilitation program. The next court hearing on the same topic is going to be held towards the end of this month, February 2019, and this time the court will have to decide whether the victims of the hack should be the first to reclaim their loss or not.

According to the latest reports, Peter Vessenes, the co-founder of CoinLab and former Chair at Bitcoin Foundation, is taking part in the rehabilitation program as well. The former chair is claiming over  1.6 trillion in Japanese Yen, which is a claim of around $16 billion. If this claim is passed by the court, then there would have a huge impact on the funds left for the victims of the hack.

Daniel Kelman, an attorney was one of the first to notice the claims. He said on official Twitter handle:

“Peter @vessenes is now confirmed as the party claiming ¥1.6 JPY in damages from MtGox. He apparently thinks MtGox victims should get nothing”

Mt. Gox claims | Source: Daniel Kelman Twitter

Mt. Gox claims | Source: Daniel Kelman Twitter

Notably, this not the first time CoinLab is appealing for claims from Mt. Gox, the two have had an edgy relationship in the past. According to a report by Bitcoin.com dated for the year 2016, CoinLab had first filed a lawsuit against the exchange in 2013, months prior to the hack. The lawsuit was filed over allegations that the exchange breached a partner contract for the U.S and Canada by not disclosing information pertaining to their existing clients.

Mt. Gox was noted to be one of the biggest Bitcoin exchanges in the world, with the platform handling over 70% of all of Bitcoins transactions. However, the platform soon succumbed to a security breach, resulting in the loss of over 7% of Bitcoin [750,000 of customers funds and 100,000 of its own funds], worth around $475 million. This eventually led to the exchange filing for bankruptcy with the Tokyo District Court.

To this, Jesse Powell, the CEO of Kraken said on Twitter:

“Unbelievable balls on this guy to hold up payouts to thousands of victims for years with an entirely frivolous claim over a botched partnership attempt. How could you think that your $16B claim should be senior to the actual account holders’? How do you show your face?”

Robert Balejik, a Twitterati also responded:

“this shows incompetency of a court dealing with the case/ legal system. Victims should get paid 1st and then anything other. Prediction markets would solve this much more effectively IMHO.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin’s volatility – an indication of growth or regression?

Biraajmaan Tamuly

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Bitcoin's volatility indicated to be a key aspect of its current success
Source: Pixabay

Market volatility plays a huge role in the financial ecosystem of assets and cryptocurrencies are regularly linked to its predominant effect. Whenever Bitcoin exhibits a rapid price movement in the market, the majority of the critics tagged the digital currency with extreme volatility and state that it would eventually lead to its downfall, since crypto assets cannot be trusted on a long term basis.

This assumption was recently widely questioned as data showed that over the last few months, the volatility rate had actually decreased for Bitcoin but the community continued to talk against the coin’s development solely on the basis of the crash witnessed by BTC after the bull run of 2017.

Pierre Rochard, a bitcoin enthusiast, recently spoke about the situation and stated, that the volatility might actually be one of the reasons why Bitcoin was starting to find prominent success in the market.

It was suggested that Bitcoin had been accumulating value over the years through various implementations and at specific time frames, short-term traders were causing an effect on the price, which would cause the “incidental price surge”. The price surge would then undergo correction and witness a fall but the price would continue to grow at a progressive rate.

The aforementioned reason can be backed by the fact that Bitcoin had indeed outperformed the likes of commodities like gold in the recent market analysis, and it was released that Bitcoin attained more profit in the long-term returns and risks asset trade in comparison to the S&P 500.

A recent data also exhibited that since 2013, any investment that included 5 percent Bitcoin to 95 percent fiat currency gathered more returns and lesser risk than the S&P 500; which also witnessed losses in 2017.

Twitter user @1Mark Moss indicated that Bitcoin was growing at it’s natural growth rate and stated,

“The volatility is the difference between perception and reality. And the reality is BTC continues to progress, just not as fast as the perception makes it seem sometimes… just part of the natural evolution.”

However, another user @JordiMorris1 explained that the people had more to do with the volatility and anything else. He said,

“The relationship of people towards Bitcoin is volatile. Bitcoin is predictible by nature, its production is stable independently of how crazy people go about Bitcoin. No sense to blame on Bitcoin.”





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