- The recent downward trend in BTC price is attributed to PlusToken scam
- PlusToken stole Bitcoin worth $3 billion from unsuspected users
- Bitcoin may still plunge significantly lower
Bitcoin News Today – Bitcoin (BTC) has experienced a roller coaster ride throughout this year. The digital currency was controlled by the bulls that sent its price to almost $14k. While the bears are in charge of the second half, pushing the price of the digital currency to as low as $6,500. The downward trend that was first ignited this past summer might have been the result of a Ponzi scheme that harvested a huge amount of BTC from a plethora of victims.
Now, a prominent research team is pointing out that the despicable actors behind the Ponzi scheme might still be selling off their illegally obtained digital currency and this could push the price of Bitcoin (BTC) significantly lower in the near term.
Bitcoin (BTC) Price Today – BTC / USD
PlusToken Scam Is the Reason behind the Ongoing Downtrend of Bitcoin
PlusToken is a Chinese digital currency storage and wallet solution. The platform was structured like an archetypal Ponzi scheme, and it offers users a referral bonus for bringing new users to the platform. At its peak, the platform has stolen Bitcoin (BTC) worth $3 billion from unsuspecting users, and it resulted in the arrest of a large number of the team members.
It does seem that some of the individuals that managed the operation are missing abroad, and data suggests that they may be selling a considerable amount of BTC on a daily basis. These massive selloffs have been providing a steady stream of downward pressure on the market. As of late last month, a data analyst – Ergo – said in a tweet that he estimates the scammers still have about 187k Bitcoin left to sell. In a tweet, he said:
“So what is the current status of the PlusToken coins? Here is a work in progress table showing my rough totals. My current totals are around 187,000 BTC. This analysis is not complete yet, but roughly confirms the previous 200,000 BTC estimates,”
So what is the current status of the PlusToken coins?
Here is a work in progress table showing my rough totals.
My current totals are around 187,000 BTC.
This analysis is not complete yet, but roughly confirms the previous 200,000 BTC estimates. pic.twitter.com/jqiGIR3xLr
— ∴ Ergo ∴ (@ErgoBTC) November 21, 2019
Bitcoin’s Price Is Likely to Plunge Lower
Although it seems that a considerable amount of the stolen coins has already been pushed to the markets, data from Chainalysis shows that the scammers may lead BTC price significantly lower in the short-term.
“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,” Kim Grauer, senior economist at Chainalysis, said while speaking to Bloomberg about the significant amount of BTC the PlusToken ring leaders still hold.”
The present technical bearishness of Bitcoin coupled with the ongoing development could suggest that the price action seen at the end of this year and the beginning of next year will favor sellers.