Crypto Update: Mt. Gox Trial Begins, Cryptocurrencies Crash, Time to Invest!
Who remembers Mt. Gox?
The japanese exchange platform that went bankrupt in 2014, resulting in a loss of 850,000 Bitcoins (worth $500 Mio. back then, and almost $2 Million now) as well as $28 million of user money.
Today, the trial for former Mt. Gox CEO Mark Karpelès began in Tokyo.
He is facing charges for embezzlement and data manipulation, including charges for accessing the Mt. Gox system to inflate his account by $1 million and for transferring $3 million from a Mt. Gox bank account holding customer funds to one of his own accounts.
Karpelès had been arrested in autumn 2015 and was released on bail in 2016.
The 32 year-old frenchman pleads not guilty and "swears to god he is innocent".
He claims that the funds got lost due to unknown 3rd parties and an error in the computer system.
If Karpelès should be found guilty anyway, he could face up to 5 years in prison and a fine.
The Mt. Gox crash caused a huge uproar in 2014 and had a very negative effect on Bitcoin's reputation.
It symbolizes the weaknesses in the bitcoin system and many critics referred to this case to highlight the supposed "dangers" of cryptocurrencies.
I even knew someone who had funds worth $4 million in Mt. Gox and lost it - that's why I still get shivers whenever I hear the name of this platform.
Many users are still waiting to recover their funds, and hoping that this trail will give some more evidence to clear up the case.
Today, the news of the Mt. Gox trial might have influenced the cryptocurrency prices once again.
If you are following the events on coinmarketcap, you will have noticed that there was a major crash in the cryptocurrency prices last night.
All major cryptocurrencies experienced a sudden crash - some were hit harder than others, but all in all, the numbers are showing RED.
While Bitcoin crashed "only" 6.6% and is now on around $2360, other currencies like Ethereum, Ripple, NEM, IOATA or EOS experienced a crash of over 20% !
Now you might assume that these are bad news - but actually, this is an OPPORTUNITY!
This is the perfect time to invest, following the oldest rule of trading: buy red, sell green.
And even if you have invested in one of these currencies that crashed - don't panic sell, hold your coins, and if possible invest some more in other currencies so that you'll have a double profit once the prices rise again.
Do you know of any other reasons for the price crash? Tell us in the comments below!
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© Sirwinchester
Its funny how we have this confluence of events. The biggest 'black mark' on the Bitcoin name (Mark Karpeles) is on trial for fraud as the currency is facing an existential crisis come Aug 1.
You're right, both events are coming together - let's see how this will turn out
People need to think long term, instead of this correction we are in right now.... I couldn't agree more and see this as a big buying opportunity.
i read in an article on CNBC that says bitcoin is falling due to two reasons - Exchange outages - now this is what i have been hearing everytime a fall in the cryptoworld happens, COINBASE has become the god of cryptoworld by controlling the price, every article says that there was coinbase outage which led to panic selling. i have started to hate coinbase now
Second is the high raise in ICO - perosnally i have always asked in various posts that is there a relation between the ICO and the falling price of crypto coins. i do not know for sure.
overall i do not think that we can sum up the entire fall in just 2 reasons, there is inception of events taking place nowadays. All we can hope is for a better tomorrow
Thanks for sharing, the coinbase issue makes sense. We'll see how the prices develop/recover in the next couple of days
Crashes are always a combination of factors. Take into account that Bitcoin has reached a big media visibility in the last couple of years and a mediatized trial like this hits hardly on mainstream investors.
There will be some more of these scams coming in this year. I won't mention any particular exchange but some of them are doing more sophistacted way of scam - manipulation of price, making people panic sell, buying low using bots to boost the price fast and then sell those coins for much greater price to the same people. This is going to last for some time. Decentralization is such a complex system to maintain
Decentralized exchanges are on the way. That is the problem with these exchanges they are still run the old fashioned ways. Cheers to the future.
Hmm, interesting that you mentioned that. You are right, decentralized exchanges are much needed.
I don't understand why people say that decentralised exchanges are on the way... they are already here since 2015! BitShares platform has that for ages (and there are other already out there)... the problem in my view is that people do not know about them and therefore do not use it enough for it to be attractive.
I think the legal teams for the Mt. Gox case should request payment in Bitcoin!!!!
"This is the perfect time to invest, following the oldest rule of trading: buy red, sell green."
The buy low, sell high golden rule.
"HODL"
The panic rule.
Some will say this is an opportunity to invest, but many have no deep pocket to invest anyway :(
I can only hold on to my coins and stay strong! How about you?
Follow me @Yehey
Of course you if you don't have a lot of capital it makes sense to start small.
But still, even if you only hold it and be patient it can still be worth the wait.
This is what I am telling my peeps... "KEEP ON STACKIN"! 😎🤑
I remember looking into trading bitcoin on the exchanges US/Russia/Japan using the Butter Bot, and then Mt. Gox crashed the market and I lost interest for years to come.
Yes, unfortunately the Mt Gox crash had many people hesitating to invest in cryptocurrencies.
I like to buy when everyone else is selling..
Exactly!