Hi everyone,
PlusToken is one of the biggest scams in history of crypto and they were able to scam people out of billions of dollars in Bitcoin, Ethereum and EOS. PlusToken promised high-yield returns on your investment, but it turned out a scam after a lot of people were not able to withdraw their investment.
The cryptocurrency market likely got affected by this scam in June 2019 until the end of November 2019 because a lot of BTC got sold in this 6 month downturn we had from 14.000$ Bitcoin to 6400$ Bitcoin. Around 200.000 BTC got sold during this period and this amount of Bitcoin got linked with the PlusToken scam, because a lot of transfers were taking place from wallets that are linked with the scam. They sold their BTC on the open market and normally they have already sold around 75% of their holdings in BTC.
Recently they are transferring BTC (around 12.000 BTC were moved) again and this time it is around 123 million dollar. It goes from wallet to wallet and this time they are splitting the BTC in smaller amounts.
What does this mean for the market ? Well there is a possibility we will see a sell-off in Bitcoin, but I believe it will be less strong than we had last time. They obviously have less Bitcoin to sell than in 2019, so it should effect it less. Furthermore fundamental analyses are showing that a lot of people are holding their Bitcoin and that they are not scared if it drops a couple of thousands in price (means less total supply on the market). Next to these two points the PlusToken people are splitting the Bitcoins in small groups and this is different from last time. It could mean that they want to sell small parts every time and this will mean less effect in the market. If this changes and they want to sell high amounts per day, then we might see a bigger effect on the market. For now Bitcoin keeps on rising, just like Ethereum and EOS, so it is not clear when they want to sell, but they are moving a part of their BTC holdings again.
Concerning Ethereum it is less clear what is going on. They got hold of a lot of Ethereum through their scam, but it is not clear yet if they have sold off parts or not. This could mean they still have all of their Ethereum holdings and if they want to sell, this will affect the price of ETH in a negative way. In December 2019, around 789000 ETH got moved from one wallet to another one. This got linked with the scam and it means they still hold a lot of Ethereum. Maybe they have been selling ETH during the crypto sell-off we saw in the second part of the year 2019, but it is not clear.
Since the crypto community is paying a lot of attention to this scam and people are trying to catch all these transfers and make this public on Twitter, it will be more complicated for the PlusToken people to sell big amounts. It seems more likely to me that we will see small sell-offs that should not affect the market too much. It would be a smarter move from them to sell-off small amounts, rather than huge amounts.
