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Is PlusToken scam responsible for the Bitcoin bears?

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PlusToken, one of the largest crypto scams might be accountable for the Bitcoin Bears.

PlusToken scam

As reported by a Twitter user, close to 200,000 BTC disappeared from the markets in the summer when investors invested in PlusToken. The users of the South Korean exchange found out they were unable to withdraw funds from the platform. The researcher reported that the funds have been liquidated through various trading platforms and have thus restricted Bitcoin’s price.

PlusToken was one of the largest crypto exit scams in history, with the project netting over 3 billion dollars before its cover was blown in June 2019. However, the story seemed to remain unnoticed until Ciphertrace released its Q2 report that disclosed the scam to the entire world.

The platform was launched in May and offered users a wallet service and an investment program with high monthly returns. The platform had a strong userbase of nearly three million users based in China and South Korea.

The platform had an excessive advertisement campaign based on offline gatherings and promised great rewards to users that bought in more investors. These characteristics are similar to those of an average Ponzi scheme. In late June, the company froze all withdrawals, and law enforcers apprehended six people

Effect of BTC Price

In August, it was revealed that the money owned by PlusToken was on the move across various exchanges. Whale Alert reported that around 23,000 BTC were moved. However, the story lacked evidence. Meanwhile, Elementus claimed that a huge sum of Ether was also on the move, but the issue faded from the spotlight. Even the people arrested by law enforcers seemed to be regular users at the platform, according to the company’s website.

PlusToken’s case demands more conclusive evidence until then an analytical report is all we have. The report suggests that the company liquidates nearly 1,300 BTC each day, a number that suffices to force pressure on the asset’s price and engage Bitcoin bears. The company possessed nearly 200,000 BTC that it can liquidate for quite some time. 

Ahmad Asghar

Ahmad Asghar

A first generation gamer at heart and tech buff by nature, have been involved in the tech sector for better part of a decade. With that insight and knowledge, he now covers blockchain, cryptocurrency and everything fintech so others can make sense of the industry.

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