J. Maurice, also known as Wiz, is a Bitcoin Miner. Recently, Wiz and Untold Stories’, Charlie Shrem, got together to discuss all matters Mt. Gox. In particular, this included the failure of the exchange, CEO of Mt. Gox, Mark Karpeles’ trial and the firm to have created the first-ever token of debt.
The news outlet, AMB Crypto reported on this podcast and has provided further details. As per the claims made, Wiz and Shrem both shared that Mt. Gox held a market share of 70 to 80% on a global scale – noting that it was significantly large. Shrem said that
“Mt. Gox was the largest and most central company to the Bitcoin ecosystem.”
During the year 2013 and 2014, a factor that many investors valued is an exchange’s volume and the fact that Mt. Gox was large and established at the time convinced many. Unfortunately, the strongly held trust died, as Mt. Gox faced the loss of nearly 850K BTC – which is a phenomenon that still has an impact on the market today.
Interestingly, Shrem disclosed that Mt. Gox had two types of BTC, one was the actual giant itself, and the other being a knockoff belonging to Mt. Gox themselves. At the time, if users held Gox BTC, then they could have exchanged it for real BTCs but at a discounted rate. This could have prevented many from losing their funds, reported Wiz.
The system is deemed the “token-of-debt,” which was created by Mt. Gox’s creditor, Josh Jones – who was the first to come up with it – adding that Bitfinex wasn’t truly the first to do so. Here’s as per his claims:
“Mt. Gox had this feature where you could internally transfer Bitcoins between Mt. Gox accounts and Josh Jones created this system. On top of that you can send your balance to his accounts and then that would be your OS […] You would have Gox BTC at that time which you could trade for real BTC.”
“The whole exchange is built on layer upon layer of patchy scrap work – the whole thing is flawed because of the way it was built.”
He also publicized that such a failure could have been avoided had an agency been hired to take care of the PR. However, Karpeles was the one who didn’t want that – to ensure that no one knew what a terrible situation they were in.
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