Bitcoin and the crypto market were affected by the PlusToken scam


Crypto specialists and voices from the media have been following for several months already the major impact PlusToken scam has produced on the cryptocurrency market prices.
The main contribution to revealing the PlusToken scam came from Chainalysis, their study clearly indicating that Bitcoin – and by extension the entire crypto market – was affected by the Chinese Ponzi scam.
When multiple analysts pointed out to the low trading volume on exchanges and Bitcoin’s vulnerability to the so-called ‘whales’, Chainalysis – a blockchain research startup – approached the PlusToken Chinese exit scam and revealed it as one of the largest crypto schemes ever that is at least in part responsible for the falling prices of Bitcoin and cryptocurrencies in the second half of 2019.
According to Chainalysis, PlusToken Ponzi scheme allowed scammers to collect more than 180,000 Bitcoins and 6.4 million Ethereum which can be estimated around $3 billion.
Even though 6 people have been arrested by the Chinese authorities several months ago, the crypto supply continued to reach independent OTC (Over the Counter) agencies, especially those on Huobi crypto platform.
Further on, it seems that until now the PlusToken scammers collected more than $180 million by selling Bitcoin in OTC locations. And when such a large supply of Bitcoin reaches the market, we all know what happens: the prices drop from too much supply and not enough demand in a short period of time.
PlusToken scammers worked hard to cover their traces via crypto-mixing services and by moving the Bitcoin funds multiple times through thousands of addresses in order to make the detection and final off-ramps harder to detect by enforcing agencies.
And when Bitcoin is falling, the entire market follows as the king of cryptos is still holding more than 65% of the entire market cap. It’s no wonder that investors who tried to diversify their investment avenues and chose altcoins have been disappointed.
The Chainalysis specialists have come to add nevertheless that Bitcoin’s falling price cannot be attributed entirely to the PlusToken Ponzi scam, though the illegal enterprise has clearly damaged the industry’s reputation forcing national regulatory agencies from all over the world to increase the level of scrutiny and impose KYC and AML legislation.
Major exit scams and exchange breaches have always been present in the crypto world and national authorities are working to stop these practices. Unfortunately, it’s difficult to stop these illegal activities when the weak point in the entire scheme is the human element.

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