Some investors in the currency of Petcone and the rest of the digital currencies decided to sell their shares and return to what they call "safe haven", which is gold.
Gold traders in Europe recorded a five-fold increase in demand from people wanting to replace the Betquin, the Times reported.
After a rocket surge over the past months, exceeding the threshold of $ 20,000, the price of the virtual currency collapsed last week to less than $ 10,000.
And led to the formation of a wave of decline in digital currencies after reports that South Korea and China may prohibit currency trading, raising concerns that regulators launched a broader campaign on the currency.
Daniel Marberger, the director of Quinninvest, said he sold a 30-kilogram ($ 1 million) gold in one day.
"This amount was sold to investors in the digital currency of Petcown, which decreased by 23 percent."
Analysts said the collapse of PeteKwin raises questions about the future of the digital process and investor confidence.
Investors in the "Bitcoin": the inevitable return to gold
