What will happen if gox liguidators just dump all the coin on the market at once (could happen it is a gov't)
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(again these are japanese bureaucrats...they could just keep their job safe and dump it all on the market ...quick/fast/dirty like a regular gov't auction
A public auction is the normal way to liquidate the assets of a failed company. Any other method (such as selling them in the open market, or to a private buyer) would expose the liquidator to charges of favoritism, incompetent trading, etc.. That also holds for the coins that the FBI seized from SilkRoad.
The FBI will use their government auction staff, but the MtGOX liquidator will probably hire some private auctioning firm. Presumably they will divide the coins into a couple dozen lots, each auctioned separately, in order to attract more buyers. Other than that, I don't expect them to worry much about getting the best possible price.
The people who will buy those coins at the auction will then dispose of them according to their interest.
By the way, I suppose that the prices off-market for "bulk" trades are not much different from the open market price. If the off-market price was much lower, there would be people buying bitcoins in bulk off-market to sell them little by little on the open market.
Conversely, if the off-market price was much higher. Is this correct?