Bitcoin Trade Halted by Mt. Gox Exchange After Price collapsed by 46 percent to $123.40 from $230 in the past 24 hours

Bitcoin Trade Halted by Mt. Gox Exchange After Price Drop

Mt. Gox, a Tokyo-based exchange that handles bitcoin transactions, halted trading of the virtual currency to let the market “cool down” after a plunge in price.

The price of bitcoins collapsed by 46 percent to $123.40 from $230 in the past 24 hours, according to quotes on Mt. Gox’s website. In a statement, the company cited an increase in trade volume and not a cyber-attack, which has caused shutdowns in the past.

Bitcoin is a virtual currency that can be used to buy and sell a broad range of items — from cupcakes to electronics to illegal narcotics. Online exchanges across the world offer a market for bitcoins to be bought and sold against dollars, euros, yen and other currencies. Bitcoin has been subject to large swings in value in recent days.

“People started to panic, started to sell bitcoin in mass (panic sale) resulting in an increase of trade that ultimately froze the trade engine,” Mt. Gox said in the statement.Trading is halted until April 12, after a surge in the number of bitcoin trading accounts took a toll on the exchange’s trading systems, causing them to “lag,” Mt. Gox said.

Other exchanges remain open and are processing orders. Tradehill Inc., based in San Francisco, is open, according to the company’s founder and Chief Executive Officer Jered Kenna.

“When we built the platform we anticipated a high amount of volume,” Kenna said in an interview.

Tradehill’s trading volume has exploded in the past few days, he said.

“We’re seeing people looking for a more professional experience coming over to us,” Kenna said.

To contact the reporter on this story: Max Raskin in New York at mraskin5@bloomberg.net

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: