Mt.Gox Falls: Drags Bitcoin Along For a Ride

Mt.Gox Falls

Mt. Gox, it seems, has reached an all-time low since peaking at over $1200 last year. Bitcoin transactions being conducted through the troubled exchange has hit the price value of $110. The value of a bitcoin on the exchange has been fluctuating throughout the day in a downward spiral. On Coinbase, another bitcoin exchange, the price of a bitcoin was around $580. Mt. Gox problems are definitely having a huge negative impact on the entire bitcoin community.

Relocation of Headquarters

To add to the confusion and frustrations surrounding Mt. Gox, it has been recently announced that the bitcoin exchange is changing headquarters. The new address given is in the similar location of the old headquarter. But, it seems that it might be an online office space only. What is going on here? Currently, Mt. Gox has not mentioned whether the staff or equipment have also been shifted to this new location. It simply directed users to contact them at the new location stating

“Please send all documents/letters to the above address from now on. Thank you for your kind cooperation.”

Verification in Place

Users are claiming that Mt. Gox has setup a sudden verification system for anyone who wants to withdraw. The system was setup without any prior notice of the change. There has been no mention of it on the Mt. Gox website. Nevertheless, other sources have claimed that the system has been in place for some time now.

“All MtGox user accounts are required to be verified in order to perform any deposits or withdrawals,”

it says on the “Verify Your Account” section of the website. There have been instances of Mt. Gox customers claiming that they have had to wait several months to become verified.

Downward Spiral Comes Crashing

Something seems to be amiss here. This is alarming news for the bitcoin community as well as for the future of this bitcoin exchange. Amid the recent disorder caused by Mt. Gox, this current development does not help in rectifying its image.

Yesterday, Mt. Gox posted another statement on their website stating

“In addition to the technical issue, this week we have experienced some security problems, and as a result we had to relocate MtGox to our previous office building in Shibuya… The move, combined with some other security and technical challenges, pushed back our progress.”

Furthermore, it stated “As much as we didn’t want to only provide an “update on an update”, this is the current status. We are committed to solving this issue and will provide more information as soon as possible to keep everyone in the loop.”

It really makes one think, that Mt. Gox is pulling wool over the eyes of its customers. The reputation of the Mt. Gox is in ruins because of their inability to produce an appropriate response or solution. This new development only reinserts the idea that Mt. Gox is only running around trying to come up with ways to pacify its customers and it is not working!

Chart image courtesy of Bitcoinwisdom