Mt.Gox Redemption Volume Is Manageable, Says CryptoQuant CEO

Mt.Gox Redemption Volume Is Manageable, Says CryptoQuant CEO

Ju Ki-young, CEO of CryptoQuant, has downplayed concerns about the impact of Mt. Gox's impending redemption process on the Bitcoin market. Speaking to Decrypt, Ki-young argued that the FUD (fear, uncertainty, and doubt) surrounding Mt. Gox has been overblown. "The BTC market capitalization is showing strong demand as it is increasing faster than the realized cap," Ki-young said. "Since the end of 2023, a total of 224 billion USD worth of BTC has been sold, but the price has rather increased by 350%. Even if 3 billion USD worth of BTC, which is the Mt.Gox redemption volume, is sold on Kraken, it is manageable at 1% of the realized cap." Ki-young's comments echo those of other analysts who have argued that the Mt. Gox redemption process is unlikely to have a significant impact on the Bitcoin market. In a recent report, Arcane Research concluded that "the market has already priced in" the potential impact of the redemptions. The Mt. Gox redemption process is expected to begin in April 2023. At its peak, Mt. Gox was one of the largest Bitcoin exchanges in the world. However, in 2014, the exchange was hacked and 850,000 Bitcoin were stolen. The redemption process will allow creditors to recover a portion of their lost Bitcoin.