Mt. Gox!!! An eerie feeling that grips crypto investors who store their valuables on exchange platforms.
You surely must have heard about Mt Gox, one of the largest earliest cryptocurrency exchange sites during the unveiling of cryptocurrencies in early 2011.
At the peak of its existence, in the years running through 2011 and 2013, Mt. Gox stood on the globe among the leading bitcoin exchange web platforms, holding a trading share of over 80% of the market volume during those periods – making it the largest in the market. The bitcoin market had just started gaining prominence on a global scale. It had built its reputation within this short period of time and had an extended customer base by leveraging the neonatal stages of cryptocurrency.
However, in 2014 it filed for bankruptcy when 850,000 bitcoins belonging to its loyal customers suddenly disappeared from its treasury following a cascade of developing technical glitches that finally ended in a close of trading affairs. The said sum estimated at $460 million USD at the time (worth over $8.4 billion dollars now), which is yet to be refunded to the disgruntled victims of the unfortunate tragedy is still pending awaiting a judicial verdict. Also, the trial involving the colossal loss and financial setback to both Mark Karpelès and the creditors is likely not to be resolved anytime soon.
Although, while it may have been recently revealed that creditors will be compensated by an unjust scale of the Yen pegged to the value of the Bitcoin as far back as 2014 prior to the incident (approximately $440 per bitcoin), the current price of the Bitcoin value far outweighs the sum to be paid out to fortunate, but not so fortunate creditors, as some claims have been somewhat rejected by trustees to the Mt Gox bankruptcy. Leaving a wide margin of corresponding unclaimed bitcoin worth in the system. As it would indicate from this premise, Mark Karpelès would be the only one to benefit from the meteoric rise in the price value of BTC.
An overwhelming disgust and anger emoted by the over 24,000 clienteles who lost their hard-earned cryptocurrencies (in bitcoins) with Mt. Gox followed the announcement of the resuscitative plan through an ICO. The currently inoperative cryptocurrency exchange platform has got everyone shocked with their incoherent logic to exploit the standard ERC20 token protocol to raise money for speculative revival.
Karpelès’ plan to raise the sum of $245 million USD through crowdfunding portrayed insensitivity and a callous approach, maligning the cryptocurrency ecosystem. His move may have aligned with the current upsurge in the crypto-market, with premier cryptocurrencies like Bitcoin and Ethereum tangent to that effect, while altcoins and tokens lineup week after week awaiting their entry into the crypto-sphere; but to think that an exchange site would need its own token to become operable again, after the disappointing outcomes involving huge market scandal would be considered laughable, and inviting public ridicule and scorn when other currently successful and laudable exchange platforms are doing just fine without one.
Reviving the exchange platform will take a lot more than an ICO; settling of outstanding debt, restoring of community confidence, upgrading and fortifying vault systems to prevent further anomalies, to begin with, truly describes how far Karpelès must travel before Mt. Gox can regain flesh. More so, he may have argued that should insufficient funds be raised during the ICO, the locked funds will be distributed among creditors; the vast majority of crypto investors will most certainly steer clear from Karpelès’ proposal as this does not inspire confidence.
Despite the inclusion of smart contract protocols in token sales and distribution, which enables immutable trustless systems; people like Karpelès, who belittle the relevance of ICO conventions and smart contract implications in the building of decentralized economies, make it hard for ‘trustless investors’ to freely navigate the world of cryptocurrency with ease and concentric state of mind. Instead, they mock the innovative framework while more lots fall in favor of regulatory headhunters, putting cryptocurrencies and their derivative ICO operations at a constrict spectacle.