On 07/03/2018, it was disclosed that Tokyo Whale, Mt Gox’s trustee, might have something to do with the trend of declining prices of cryptocurrencies. Over a period of 3 months, Kobayashi of Mt Gox auctioned off 300 million dollars’ worth of Bitcoin. This injected several numbers of Bitcoins into the trading circulation as a result of which the price of Bitcoin dived downwards. The peak price of December has now dipped by 51.6%, and cryptocurrency experts are viewing Kobayashi as partly responsible for the price loss.
Kobayashi is a renowned lawyer of Tokyo and trustee of Mt Gox insolvency, as claimed by news reports.
Details of News Report
Mt Gox has auctioned off 34008 BCH and 35841 BTC without any consultation with the courts in the period between 27th Sep 2017 and 7th March 2018. This selling off was done to pay out the Mt Gox creditors of 45.6 million JPY of the total debt of 263.5 trillion JPY. Kobayashi gave up after this and left Mt Gox with a debt of 45.5 million JPY and the remaining JPY 45.6 million was rejected by him. Even though the court had given him permission to sell some of the BCH and BTC, but selling the virtual currency online caused a lot of stir among the Bitcoin investors besides propelling the downward crash.
The five transactions
- Dec 22: Kobayashi sold Bitcoin online at a price of 13480 per coin and received 80.8 million dollars. The price of Bitcoin dropped soon after to 12350.10 dollars before rising again by 6.2% to 14320.90 dollars.
- Jan 17: Kobayashi sold 8000 Bitcoins at 10788.10 dollars per coin and received 86.3 million dollars. The price of Bitcoin dipped to 9622.96 dollars before rebounding by 7.7% to 11626.80 dollars.
- Feb 5: 18000 Bitcoins were sold off in three groups of 6000 each for 8127 dollars per coin and 32.5 million dollars were received.
- Feb 8: 4000 Bitcoins got sold off at 8246.62 dollars per coin, and 32.9 million dollars were received.
- Feb 9: 10000 Bitcoins got sold off at 8666.69 dollars per coin, and 86.6 million dollars were received.
Critical Analysis and Conclusion
The prices went down with the introduction of thousands of Bitcoins in the market. However, investors pitched in to purchase Bitcoins at low prices, thereby pumping a rebound, for which Kobayashi can be held thankfully responsible.