Resurrection of Mt.Gox

[overc]

The simple and clear plan how to resurrect Mt Gox.

What follows is a summary of where I read Mt Gox is at presently and developes a simple strategy for full recovery and beyond.
First of all I would like to say that the worst-case scenario and last case resort would be to declare Mt.Gox bankrupt and to put Mark Karpeles in a jail.
This will not return the customers funds and will not restore confidence to the bitcoin concept.
According to the leaked, but officially unconfirmed document, the balance of Mt.Gox looks like this now:

Active (Funds currently accessible by Mt.Gox right now):
-         2,000 BTC
-         22,430,000 USD (does not include frozen 10,500,000 USD)

Passive (Customers’ funds):
-         624,408 BTC
-         55,000,000 USD

The proposal is: Turn all of Mt.Gox customers into the shareholders by issuing 72,440,800 shares.

-        The user-base from mtgox.com will be converted into user-base gox.com.
-        All BTC account balances in mtgox.com will be converted into mtgoxShare account balances in gox.com by price 0.01 BTC per share.
-        All USD in mtgox.com account balances will be converted into mtgoxShare accounts balances in gox.com by price 5.5 USD per share.

It is possible to recreate and re-brand the Mt.Gox business completely (including software reengineering) using 2,000 BTC and 22,430,000 USD which Mt.Gox has now.

The recreated site http://gox.com will allow trade pairs:
-         mtgoxShare/BTC
-         USD/BTC
-         Other fiat currencies/BTC

-        All BTC trade fee will go to pay share's dividents.
-        All USD/other fiat trade fee will cover operational cost to run the business.

At the end of each week the dividends will be credited into BTC user’s accounts.

That is very simple and transparent scheme will allow each shareholder to see their profit instantly and use it weekly.

This simple and straight-forward plan will facilitate returning funds to existing customers and even bring some potential profit to them. It will allow customers to have the choice: to either sell shares at market price, which will be established immediately after gox.com goes live and withdraw it instantly, or earn dividends with the potential for capital gain recovery and, probably, have a benefit from raising shares prices.
It is obvious that with a clear, open and transparent plan there will be many investors who will deposited BTC and USD into gox.com for the opportunity to invest in one of the oldest and historically the biggest and most trusted bitcoin business institution.

The good points are:
- Mt.Gox has a well-trained AML team with lots of experience in dealing with banking and regulations.
- 22M USD is enough to recreate the business without additional investment.

I personally trust Mark Karpeles and even welcome him to stay in the position of CEO because:
- He knows the business very well
- He knows what mistakes he made and he knows how to avoid similar mistakes in future.

Naturally, the final decision regarding Mark Karpeles position would be first in the hands of the shareholders and second according to Mark’s own preferences.

Software development for gox.com should be the responsibility of someone other than the CEO because the CEO of such a complicated business cannot competently undertake the position should be independent.
22M USD is adequate to hire excellent developers to do the software.
However, software development for gox.com should be delegated to someone other than the person responsible for running a complex business such as Mt.Gox.

According to the ancient proverb: What doesn’t kill you makes you stronger.

I personally believe in a strong and bright future for gox.com.

[1714106512]

1714106512

[1714106512]

1714106512

[1714106512]

1714106512

[overc]

If Mark filed "Bankruptcy protection" it is very good news.

The only real way to return our funds: to protect Mt.Gox against bankruptcy, to restart the businnes and to became shareholders.

So, the question is: how to submit this plan to people who make decision about Mt.Gox ?

I think there are many of Mt.Gox customers who would love this plan.

Do you have any idea how we can come together and make it works?

[Definit]

@Magical Tux


more or less

[Agent Provocateur]

Not to forget the coinlab incident. 5M$ for MtGox if they can win the fight, but 75M$ penalty if they lose.

[overc]

I do not count these 5M.
22M it is what Mt.Gox has right now.
If they lose, then 75M penalty will be for Mt.Gox, but  gox.com will be the brand new enterprise and not liable for this penalty.

[overc]

@Magical Tux


more or less

So, if anybody here has a direct contact with Magical Tux and can submit this plan to him?

[BitCoinNutJob]

account holder shares is a good idea, i support that

[ilpirata79]

I also support that, but I would not say 1 share = 0.01 BTC = 1 $, which means that 1 goxcoin == 100 goxdollar.

I add that this is the occasion for Mark K. NOT to prove he is a thief. If he accepts to do something like this, he MAY be innocent, otherwise he is almost for sure guilty (he runs away with the bitcoins).

Best regards,
ilpirata79

[BITCOIN-PIZZA-DAY]

Might work out to at least get the amount of value in fiat back if bitcoin goes to moon the next years.


But before we do anything.....

Fat fuck karpeles has to come out with the truth.

“There is a high possibility that the Bitcoins were stolen,” Mt. Gox said in a statement when it filed for bankruptcy. “It is considering filing a criminal complaint.”

WTF

[kirth]

This is the first interesting and worthy post since two weeks.

[overc]

I also support that, but I would not say 1 share = 0.01 BTC = 1 $, which means that 1 goxcoin == 100 goxdollar.

I add that this is the occasion for Mark K. NOT to prove he is a thief. If he accepts to do something like this, he MAY be innocent, otherwise he is almost for sure guilty (he runs away with the bitcoins).

Best regards,
ilpirata79

No, this are two undepended types of shares:
- mtgoxBTC - nominal price 0.01 BTC
- mtgoxUSD - nominal price 1$

1 mtgoxBTC is not equal 100 mtgoxUSD.
Price of mtgoxBTC/mtgoxUSD will be enstablished by market.

[piergianni]

yes cool i'm in... i agree with this plan... i lost 8.86 bitcoins in mtgox 

[overc]

I also support that, but I would not say 1 share = 0.01 BTC = 1 $, which means that 1 goxcoin == 100 goxdollar.

I add that this is the occasion for Mark K. NOT to prove he is a thief. If he accepts to do something like this, he MAY be innocent, otherwise he is almost for sure guilty (he runs away with the bitcoins).

Best regards,
ilpirata79

No, this are two undepended types of shares:
- mtgoxBTC - nominal price 0.01 BTC
- mtgoxUSD - nominal price 1$

1 mtgoxBTC is not equal 100 mtgoxUSD.
Price of mtgoxBTC/mtgoxUSD will be enstablished by market.

As the gains from dollars and from bitcoins are the same when a trade occurs, you can demonstrate that in the end one that has 1 goxcoin gains as one that has 100 gox dollar... just do the math.

Best regards,
ilpirata79

No, not the same.

Let's say two trades are here:

1. 1 BTC sold for 500 USD. 0.4% fee. Gox has two fees: 0.004 BTC and 0.2 USD

2. 1 BTC sold for 1000 USD. 0.4% fee. Gox has two fees: 0.004 BTC and 0.4 USD

[ilpirata79]

As the gain in bitcoins and in dollars is the same when a trade occurs,
we have that who got a 1 gox btc gets 1/624400 of the bitcoin income, while who got 1 gox dollar gets 1/55000000 of the dollar income. Therefore, as the two incomes are the same, if we say that R is the exchange rate goxcoin/goxdollar, we have

1/624400 = R * 1/55000000 => R = 88,08

With the share composition you propose 1 gox btc is about 88 gox dollars.

The right way to do this is to have one type of share and establish what is the R value (not easy).

Best regards,
ilpirata79

[sd]

You want Mark Knuffles to stay in the CEO role because he fucked it up so very badly before? That's irrational.

[ilpirata79]

Your way of assigning shares is kind of "random" because it depends on the relative amounts of liabilities in dollars and in bitcoins of Mtgox. Instead we should assign shares in a more fair way, as, for example, who got 1 goxcoin (on the exchange) gets the same of who had 500 gox dollars.

Best regards,
ilpirata79

[overc]

Your way of assigning shares is kind of "random" because it depends on the liability in dollars and in bitcoins of Mtgox. Instead we should assign shares in a more fair way, as, for example, who got 1 goxcoin (on the exchange) gets the same of who had 500 gox dollars.

Best regards,
ilpirata79

After some thinking I would agree with you, probably you are right. It will be more fair to convert 55M USD balances into let's say 100K BTC by current market price 550 and to issue 72,440,000 shares
wich are entitled for USD and BTC dividents.

It is idea just appeared: all of BTC trading fee will go to dividents and all of USD trading fee will cover operational cost to run the business.

[overc]

You want Mark Knuffles to stay in the CEO role because he fucked it up so very badly before? That's irrational.

First of all I personally trust him. Secondly he made mistake, he know how to avoid that.
But you are right as well: it is your opinion.
That is why I am saying that position of Mark must be determined by shareholders vote.

[shadyz]

You want Mark Knuffles to stay in the CEO role because he fucked it up so very badly before? That's irrational.

First of all I personally trust him. Secondly he made mistake, he know how to avoid that.
But you are right as well: it is your opinion.
That is why I am saying that position of Mark must be determined by shareholders vote.

And who are you ,that you're saying you personally trust him? NOBODY in the bitcoin community is worth trusting and especially not by proxy of someone else trusting them.

Otherwise i agree with the plan

[BitCoinNutJob]

mark wont be continuing as CEO of gox check video in link

http://www.dailymail.co.uk/news/article-2570159/Bitcoin-firm-hacked-virtual-bank-heist-goes-bankrupt-leaving-NO-prospect-investors-getting-hundreds-millions-pounds.html