Mt. Gox Was The First To Create ‘Token As Debt’, Is That What Bitfinex Exchange Is Doing?
Charlie Shrem Says Mt. Gox Created “Token As Debt” Before Than Bitfinex
The cryptocurrency market remembers Mt. Gox as one of the most complicated moments for Bitcoin (BTC) and digital currencies as a whole. A recognized Bitcoin entrepreneur and investor, Charlie Shrem, discussed the story of this exchange and the crypto space. He talked about these topics during the “Untold Stories” podcast with J. Maurice.
Charlie Shrem Says Mt. Gox Created “Token As Debt”
According to both, Maurice and Shrem, Mt. Gox handled between 70% and 80% of the total market share of Bitcoin trading around the world. The platform was very important for the whole ecosystem and it played an important role in allowing users to trade the most popular digital asset.
Between 2013 and 2014, the exchange experienced an attack in which it lost 850,000 BTC, a large part of the total number of Bitcoins at that time. Indeed, it was more than 5 percent of the total Bitcoin supply.
At the same time, Shrem said that although Mt. Gox imploded, the firm was able to create the first token as debt in the market.
According to Wizsec Bitcoin Research, the days before Mt. Gox shut down were really hard for individuals. People couldn’t trust the exchange anymore and they didn’t know what was really happening. Indeed, it was not possible for them to withdraw their coins before everything happened.
According to Shrem, there were two possible Bitcoin options available to be traded on Mt. Gox. One was the original and real Bitcoin, and the other was Mt. Gox’s Bitcoin. This Gox BTC was Bitcoin that couldn’t be removed from the Mt. Gox platform before it imploded.
About this, Wizsec commented:
“Mt. Goz had this feature where you could internally transfer Bitcoins between Mt. Gox accounts and Josh Jones created this system on top of that so that you can send your balance to his accounts and then that would be your os that will be your Bitcoin builder change balance.”
This fake Bitcoin called Gox BTC could be used later to trade it for real BTC, but users were already not believing in it. The price of Gox BTC was under the market value of Bitcoin and was intended to help users to find a solution to the complicated situation. Nonetheless, this was not enough to stop the problems that the exchange already had.