Mt.Gox: what are the steps that led to the failure? what are the stages that led to failure? Very few people know what it is and why it is so important to study the stages of its history.

It is, in fact, one of the sites for the exchange of cryptocurrencies which in 2007 seemed to promise well and which, despite this, was closed only 3 months after its opening.

Mt.Gox: the origins

Born in 2006 from the mind of the ingenious fan of the Magic game cards Jed McCaleb, the goal of the platform was to encourage the exchange of cards between different users.

Unfortunately, the success was far from great; nevertheless, Jed decided to buy the domain mtgox, the acronym for the game Magic: The Gathering Online eXchange. Despite all efforts, however, the site was closed in 2007 due to the limited use that was made of it.

In 2009, however, it was reopened: this time to offer interested parties the opportunity to exchange another type of card. It was the cards of another game (The Far Wilds). Even in that case it was not a huge success, but was still purchased by Mark Karpeles, who lived in Japan and wanted to use the platform to develop some of his own ideas.

Mt.Gox: from the exchange of cards to that of cryptocurrencies

In 2010 Tokyo (Shibuya district) was named Mt.Gox, the new one cryptocurrency exchange. In no time the site has gained increasing popularity and success in the world of cryptocurrencies.

In the biennium 2013-2014 managed beyond 70% of all Bitcoin-related transitions in the world. However, with the increase in popularity of the Bitcoin, others were born Exchange intended to erode market share in Mt.Gox. 

Before it even closed, the popular site had to face various problems related to safety, which led to the "death" of the platform itself.

In the far 2011 a hacker managed to infiltrate the site by stealing about 2.000 Bitcoins: this led to a depreciation of the value of Bitcoin itself, the price of which fell to 1 cent.

It was just one of the many problems that the owners of the platform faced. For example, in 2013 Mt.Gox faced a $ 75 million lawsuit due to an error included in the customer management contract.

In the same year, theU.S. Department of Homeland Security he confiscated the money from a main platform subsidiary, as he did not have the right licenses to do that kind of work.

Subsequently, other losses occurred, some of which were quite significant, due to errors in the management of the platform.

A rapid drop in exchange requests and errors in transition management forced Mt.Gox to suspend transitions.

The site closed and the owner said bankruptcy. In the same year the various ones started liquidation procedures. All this soon led to the progressive "death" of the platform.