I believe that many of my friends who have just entered the circle or entered the circle relatively late in recent years do not know what the "Mentougou Incident" is. I only learned about it after the recent developments in the Mentougou Incident. Let me popularize it to those of you who don’t know yet.
What is the Mentougou incident in the cryptocurrency circle?
In February 2014, Mt.Gox, an exchange that accounted for more than half of the BTC trading volume at the time, ceased operations. Shortly after the cessation of operations, Mt.Gox announced that about 850,000 BTC were stolen in a hacker attack, including 100,000 BTC from the Mt.Gox platform and 750,000 BTC from users. The price of BTC was about $600 at the time. 850,000 BTC is worth about $510 million. It is conceivable how much selling pressure would be caused if this batch of BTC was released now.
Later, the court ruled that Mt.Got had to use the remaining assets in its hands to compensate users, which was approximately 140,000 BTC.
Mt.Gox was once the world's largest Bitcoin exchange, headquartered in Tokyo, Japan. It was founded by Jed McCaleb in 2010 and acquired by French developer Mark Karpeles in 2011, becoming a trading platform focused on Bitcoin. In 2013, the price of Bitcoin soared from $13 to $1,100, and Mt.Gox quickly developed into the world's number one Bitcoin trading platform. At its peak, it occupied 70% of the Bitcoin trading market share.
However, the good times did not last long. On February 7, 2014, Mt.Gox suddenly announced that it would stop all Bitcoin withdrawals. The reason at that time was that it needed to sort out the currency process, so users did not pay much attention. But just 17 days later, Mt.Gox not only suspended all transactions, but even the website could not be opened.
Liu Chunsheng, an associate professor at the Central University of Finance and Economics, told the China Times that since the Mt. Gox trustee holds a large amount of Bitcoin and Bitcoin Cash, its repayment work may lead to a large number of tokens being sold on the market, thus bringing selling pressure to the market. This selling pressure may cause the price of Bitcoin and other related tokens to fall.
