The course of bitcoin and ether collapsed very quickly last night. Chainalysis recently published an analysis stating that PlusToken still has 20,000 bitcoin and 790,000 ether in its greenhouse to dump on the market.
Sharp fall after mealtime
At around 7:30 PM last night, the bitcoin rate dropped 3% within a few minutes. Ether even lost a little more than 7% within the same few minutes. The prices have not fallen so fast, so fast, since 25 November.
The expected culprits seem to be the PlusToken scammers. Or at least a publication of Chainalysis about these scammers. They published almost four and a half hours earlier in the day that, in all likelihood, PlusToken still holds 20,000 bitcoins (worth 123 million euros) and 790,000 ethers (worth 92 million euros). That is more than enough to influence the rates of both coins. This news alone can be enough for FUD in the markets. FUD stands for fear, uncertainty and doubt.
Chainalysis also wrote that PlusToken has already sold 166 million euros in stolen bitcoin.
Influence on the market
Six suspects were arrested on 27 June. These would all be involved with PlusToken. They were extradited to China from Vanuatu because the Chinese prosecutors claim that PlusToken ran a Ponzi-like construction. Chainalysis wrote that they were able to detect cryptocurrency’s worth 1.8 billion euros. These are actually coins of victims of the pyramid scheme.
The arrests took place just after the 2019 peak, bitcoin reached a value of 11,400 euros at the end of June. From that moment it only went downhill with the price of not only bitcoin, but of almost the entire cryptomarket. Chainalysis cannot say with certainty that the coins sold by PlusToken have caused the market to collapse after June. They do write that “those payouts cause increased volatility in the price of bitcoin, and that they correlate significantly with bitcoin price drops.”
Many other researchers are a bit more convinced about this and say that it is not only the packaging of the market that comes from PlusToken, but also the growth towards that top is due to this rogue organization.
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