The PlusToken Wallet could be the reason for Bitcoin’s unexpected price drop last week. One analyst has claimed that selling pressure was caused by the massive liquidation of funds from the PlusToken scheme and that this will continue for the next two months.
Down to $6,600
The cryptocurrency market was shocked when the price of Bitcoin (BTC) went off its expected bullish path and plummeted to $6,600. However, traders and analysts who followed the issues surrounding PlusToken weren’t quite surprised. PlusToken is considered as one of the largest Ponzi scams in the crypto industry.
PlusToken had a big following in Asia, with the platform raking in around $3 billion in various currencies, including BTC and Ether (ETH). The crypto wallet was heavily promoted in the region as a digital currency custodian that can provide monthly returns of up to 18% via mining, arbitrage, and trading.
There have been reports back in August that warned investors and bitcoin enthusiasts of the possibility that the PlusToken scammers would liquidate their assets and flood the market with the stolen BTC and pull prices down as they push forward with their exit.
Independent cryptocurrency researcher Ergo claims that was exactly what happened. The analyst researched PlusToken extensively and investigated different wallets that might be associated with the alleged Ponzi scheme. Determining the number of BTCs the scammer’s control could provide an assessment of how many tokens have been dumped or could be dumped on the open market.
Ergo was able to cite three distinct wallet addresses and alleged they were part of the PlusToken operation. The analyst used the reported 200,000 BTC amount as a starting point of the research. Ergo noted the use of the Wasabi Mixer, which is a way of mixing tokens to make tracking them harder. The scammers also used a method called “self-shuffling.”
Ergo tweeted the current number of BTCs accounted for and said that while the analysis isn’t complete yet, the 187,000 BTC currently totaled confirms the 200,000 BTC estimate.
1,300 BTC Sold Every Day in Average
The analyst also said that if one assumes all the mixed coins that are presently accounted for have been sold beginning early August and until this week, there will be an average at about 1,300 BTC being sold every day. Ergo then if analysts utilize the daily sell estimates and the 58,000 alleged unmixed BTC in their estimates, they will see the remaining selling could be between six to eight weeks.
Ergo also said that if all the wallet addresses the crypto specialist discovered continue to dump their coins at the same speed, there’s almost no chance Bitcoin prices can stay above $6,000.