Mt. Gox, the defunct crypto exchange, has announced a 12-month delay in the deadline for repayments, pushing it to Oct. 31, 2024. Creditors of Mt. Gox have been waiting for relief for a decade since the exchange was hacked in 2014, leading to the theft of 850,000 bitcoin worth nearly $23 billion at current prices. The exchange managed to recover only 20% of the tokens after the hack. Despite the delay, Bitcoin struggled to gather upside traction, and analysts had warned that the repayments could increase BTC’s active supply, leading to price weakness.
IMX Token Surges Amid Market Downturn
In contrast to the major cryptocurrencies, IMX, the native token of non-fungible tokens platform ImmutableX, surged 35% to 74 cents during Asian trading hours on Thursday. This price rally was led by South Korean traders. The crypto market depth has deteriorated significantly since the collapse of FTX, which means a few large sell orders can have an outsized negative impact on prices. Major cryptocurrencies like bitcoin, ether, XRP, and BNB traded 0.5% to 1% lower. The IMX price rally is accompanied by an over 22% increase in the 24-hour global trading volume, which rose to $556 million.
South Korea’s Upbit Exchange Leads IMX Trading
The IMX-Korean won (IMX/KRW) pair listed on South Korea’s Upbit exchange accounted for nearly 20% of the global activity, followed by Binance’s IMX-tether (IMX/USDT) pair, which contributed 7% to the total volume, according to data from Coingecko. This indicates a strong interest in the IMX token among South Korean traders.
Bitcoin’s Dominance Rate Increases
The chart shows bitcoin’s dominance rate, or the top cryptocurrency’s share in the total crypto market, is again trending north. The latest breakout in the dominance rate comes as bitcoin trades well below its peak in July, indicating that money is likely being rotated out of alternative cryptocurrencies and into bitcoin.
Implications of Mt. Gox Repayment Delay
The delay in repayments from Mt. Gox has left many creditors waiting for relief for a significant amount of time. With the new deadline set for Oct. 31, 2024, it is uncertain how this will impact the overall cryptocurrency market. Some analysts believe that the repayments, once they occur, could increase BTC’s active supply and lead to price weakness. However, others argue that the delay could give the market more time to stabilize and absorb the repayments when they eventually happen.
Conclusion
In conclusion, the delay in Mt. Gox’s repayment deadline is a significant development for the cryptocurrency market. While it prolongs the wait for creditors, it remains to be seen how this will impact the overall market and bitcoin’s price. Meanwhile, the surge in IMX’s price and trading volume highlights the growing interest in non-fungible tokens and their platforms. As the market continues to evolve, it is essential for investors to stay informed about these developments and adjust their strategies accordingly.
