Withdrawal speculation has sparked a price surge on the troubled Bitcoin exchange Mt. Gox, with the BTC/USD exchange rate reaching an all time high since forgoing transaction meltability problems.
The rumour was sparked on the popular Bitcoin reddit community board which retains over 100,000 loyal subscribers resulting in a surge in the BTC/USD price. It reached an all time high of $348.
Headquartered in Tokyo, Mt. Gox was once the most popular virtual currency exchange in the world, reporting an impressive 10,000 new user registrations per month last April.
If you’ve not been keeping up with the recent news, this success was quickly reversed with prices diving to $91.50 when user accounts were suspended. Mt. Gox blamed a transaction bug in the Bitcoin source code.
Investors and account holders have yet to receive concrete evidence that their investments are safe or even timely progress of how the company is working to fix the alleged bugs.
Is the sudden price surge a sign that the troubled exchange is once again operating as normal?
All the same, we think it’s safe to say that even if withdrawals resume, customers will no longer trust such a company with their hard-earned Bitcoins.