Mt Gox, the now-defunct bitcoin exchange, has been out of the media headlines for a few years now, given the fact that it entered bankruptcy following the disappearance of hundreds of millions of dollars-wroth of bitcoin.
However, recent reports now indicate that the Mark Karpeles, the CEO of the digital currency exchange is considering the idea of launching an Initial Coin Offering, in order to revive the exchange. As controversial as this may sound, Mark Karpeles wrote a blog post detailing the possible implications of an Mt Gox ICO.
To put things better into perspective, a brief history lesson may be required. A few years ago, Mt Gox was the world’s biggest bitcoin exchange, dominating both the Japanese and the world’s exchange market. Following an event that was initially reported as a hack, hundreds of millions worth of bitcoin were lost. This led to a controversial claims process and the bankruptcy of the exchange. While 202,000 BTC were reportedly retained as assets, and placed under the custody of a trustee, many of those who were affected following the disappearance of the coins never got their money back. Additionally, Mark Karpeles had to face law enforcement authorities, following numerous claims of fraud and mismanagement. Additionally, Japanese authorities also accused and charged the CEO with fund embezzlement. The trial is scheduled to begin in early summer 2018.
Following the events, the bitcoin price had a lot to suffer, as people throughout the world lost trust in the digital currency, still at its early stages then. When this happened, the value dropped from over $1,000 to a few hundred dollars, in what was the coin’s biggest drop in value percentage.
In the blog post, the CEO of the defunct exchange states that reviving Mt Gox would require roughly $245 million worth of investments, which could be achieved via an ICO. In his press statement, he mentioned that: "Launch an ICO to raise money to hypothetically revive MtGox. This sounds more challenging, both legally and because there is no guarantee of raising enough to revive MtGox. In case there is not enough raised it could still be locked to be distributed to creditors, which would be better than nothing."
Apart from this aspect, he also mentioned that if there is anyone looking to purchase the exchange, or to help with its revival, they should get in touch.
Based on everything that has been outlined so far, what are your thoughts on the possibility of a Mt Gox revival via an ICO? As controversial as it sounds, would it be possible?