Does This Chinese Scam Control the Entire Bitcoin Market?

November 28, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Analysts believe that the fraudulent Chinese crypto project PlusToken has a tight grip on the Bitcoin market. The scammers could sell over 1,000 BTC daily, pushing the price down.

PlusToken was a wallet provider and probably the biggest crypto scam in 2019. The Ponzi scheme, which is mainly active in China, promised insane returns of up to 19 percent a month and ended, as expected, one of many exit scams. PlusToken users are said to have been cheated of an incredible $3 billion.

Just under half a year later, the scam continues to have a powerful impact on the crypto market. That said at least recently, the anonymous analyst “Ergo” on Twitter wrote about his view.

In a series of tweets, he said that PlusToken holds at least an unbelievable amount of 187,000 BTC. The fraudsters would have tried on the wasabi mixer and the so-called self-shuffle to disguise the movements of their coins.

Ergo estimated that PlusToken still has around 58,000 BTC at the time of its tweeting, selling 1,100 to 1,300 BTC daily. That would mean that everyday coins worth around $9 million would be put on the market. No wonder, then, that Bitcoin is seriously concerned in terms of price. The analyst has calculated that the scammers could continue their sales for another 1.5 to 2 months.

Another representative of the plus token theory is Dovey Wan of the crypto-investment firm Primitive Ventures. She expressed her opinion on Wednesday that PlusToken was responsible for the sharp price increase of BTC between April and June, as for the subsequent depreciation.

In fact, until the time when PlusToken was exposed as a scam, Bitcoin kept going up and has been on the downtrend ever since. However, there are also skeptical voices: The company TokenAnalyst stated in mid-August that the PlusToken operators did not even transfer their coins to exchanges and therefore coins aren’t been sold. Ergo also admitted that he has not been able to prove transfers to exchanges.

Author: Marko Vidrih