BTC - Could the PlusToken scam be helping push Bitcoin prices down?steemCreated with Sketch.

in bitcoin •  9 months ago 

PlusToken was one of the largest crypto scams ever and may be helping to push Bitcoin lower currently

Rewind back to March of this year and the PlusToken scam was in full swing.

It was promising investors that if they just purchased bitcoin or ether and transferred that to the PlusToken wallet, they could earn 8-10% interest on their holdings monthly.

Sounds, too good to be true, right?

It was.

Though that didn't stop the scam from taking off in China raising something like $2.9 billion and likely contributing to bitcoin's rise in price around the same time:

(Source: https://www.financemagnates.com/cryptocurrency/news/plustoken-scam-could-be-much-larger-than-2-9-billion/)

The scam that popped the bitcoin mini bubble?

Interestingly, and likely not coincidental at all, the scam was eventually discovered and shut down literally on the same day that bitcoin peaked in June of this year.

Coincidence?

I think not!

The suspected suspects can be seen here:

(Source: https://twitter.com/DLT_Vanuatu/status/1150395100133859329)

The price has mostly been in decline ever since that time.

Still causing bitcoin to slide?

New research by Chainalysis Inc is showing that the proceeds from that fraud, roughly $2.9 billion likely have been responsible or contributing to bitcoin's declines over the past 6 months.

Their research indicates at least 25,000 bitcoin have been sold so far from that scam, and possibly another 20,000 could still be sold.

There have also been significant amounts of ether sold and still remaining to possibly be sold.

From Chainalysis:

“That’s certainly something to consider when you are thinking about where the price is going, at least in the short term. It could be, according to our research, continued downward pressure.”

(Source: https://www.bloomberg.com/news/articles/2019-12-16/chinese-crypto-scam-unwind-suggests-bitcoin-risks-extending-drop)

Very likely contributing to the decline...

Well, there you have it, if you have been wondering why bitcoin has been acting so weak over the past 6 months, it very likely could be due to this.

The good news is that we have likely worked our way through the majority of the selling and the lower the price goes the less money will have to come in to absorb it all.

Either way, I still say new highs on bitcoin by middle of next year.

Stay informed my friends.

Image Source:

https://www.bloomberg.com/news/articles/2019-12-16/chinese-crypto-scam-unwind-suggests-bitcoin-risks-extending-drop

-Doc

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Hopefully it does it. Crosses fingers

Posted using Partiko Android

Yes, hopefully.

Scam projects are the one thing that slow down real adoption of cryptocurrencies as daily payment method. People stopped using FIAT because banks could not pay interest anymore and at the same time fees increased exponentially.

  ·  9 months ago Reveal Comment

What is this?