Despite being in the eye of the hurricane, the crypto market is aware of everything that may be happening in its environment that, in one way or another, benefits or harms the development of digital money.
The freezing of funds, the collapse of Terra, the bankruptcy of Celsius, and even the fall of Three Arrows Capital represent a state of alert for what are the exchange platforms, cryptocurrencies, and investors because these critical decisions and situations strongly retract the market regardless of those affected who may be harmed in the process.
One of the best-known cases regarding the bankruptcy of a crypto broker is Mt. Gox, to the point of being considered the first company, whose operations with cryptocurrencies have failed in the history of their evolution, becoming the worst pain for the head of the crypto market in 2014. Today, after the convulsions of the crypto market, this broker reappears to modify the cryptocurrency market positively.
Mt. Gox Background
Known as a cryptocurrency exchange platform formed in 2007 whose name was born as a diminutive of the well-known game “Magic: The Gathering Online eXchange.” After housing more than 125,000 users in its client portfolio, it became popular, positioning itself as the first cryptocurrency broker. However, by 2011, its security protocols in operations were violated.
This situation alerted hackers and hackers who began to evaluate the Mt. Gox case and found the perfect opportunity to carry out Bitcoin thefts through false transactions where non-existent credentials were the best ally. The millionaire losses in Bitcoin managed to destabilize the market, where not only did the price decrease on the platform but also in the entire ecosystem.
Although this situation was repeated in 2014, it was where he completely violated the system by stealing around 850,000 BTC, leading to bankruptcy and, therefore, several legal proceedings for the damage caused, achieving an imbalance in the digital financial market never before viewed.
Crypto brokers that have disappeared
When investing in cryptocurrencies, one of the most common suggestions is always to investigate the exchange platform so that users are not affected by any fraudulent situation. There are currently thousands of exchange platforms, only those regulated or controlled by the organizations and entities in charge of supervising financial operations; even when cryptocurrencies are not regulated, Exchanges have to meet a series of requirements to be able to operate.
Today, before the fall of Bitcoin, we are witnessing how even the most positioned companies are going through difficult stages where they have had to declare bankruptcy or reduce their workforce. There are endless platforms whose dubious origin makes them reveal the false identity and prestige they possess. They are always scams when they request money before making investments to multiply it.
It is relevant to carefully evaluate the companies dedicated to the exchange and management of cryptocurrencies; since traditional financial operations are complex and volatile, digital assets tend to be in a more significant proportion.
Change of trend in the hands of Mt. gox
Yes, as it reads, although it seems contradictory since the consequences this exchange platform has brought to the market have been disastrous, it turns out that part of the stolen Bitcoins has appeared.
This situation arises after years of legal struggles, managing to recover the sum of 135,000 BTC, which will be transferred to their owners either as BTC or in Fiat currency (dollar). All this comes together in the face of the prevailing need among Bitcoin users for a change in trend that will make the digital market evolve.
It all depends on how users want their capital to be delivered since if it is in the form of legal tender, it could make the market fall more, while if they want it to be in Bitcoin, it could boost the market and achieve an upward change. This new situation changes the landscape again, generating new tension in the cryptocurrency market.
Conclusion
All the events that have taken place in this second week of July put the digital financial market in convulsion since the panorama that will come are unknown, and even less so now that inflation and the crisis in the United States and Europe are complicated. Everything will depend on the market’s mood and new actions do not arise that complicate it even more.
Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.
