Bitcoin Ponzi Scheme That Keeps Dumping BTC Blamed for Bearish Price Action

News
Wed, 12/04/2019 - 06:00
Alex Dovbnya
PlusToken could be the real reason why the BTC price continues to bleed
Cover image via 123rf.com
Contents

South Korean Bitcoin scam PlusToken could be responsible for Bitcoin's bearish price action, according to market expert Jacob Canfield. 

Canfield states that technical analysis (TA) is not reliable when bad actors who operated one of the biggest Ponzi scams in history keep dumping BTC on the open market.      

 

image by @JacobCanfield

Related
Ripple and Ethereum Compared to Biotech Scam Theranos by Bitcoin Core Developer Peter Todd

The biggest crypto scam

The modus operandi of PlusToken was rather simple -- they offered their clients interest for storing coins on their platform. They promised to share part of their revenue that comes from exchange profit and mining. 

Of course, none of this was true. PlusToken allegedly stole around $2.9 bln in digital assets from its investors, according to a report published by blockchain sleuth CipherTrace.

Considering the scope of this scam, it could give BitConnect a run for its money.

Related
Elon Musk Gets Embroiled in Crypto Scam That Offers Tesla Model S

More pain in sight  

While some of the members of the PlusToken team were apprehended by Chinese police back in June, there are still those who keep selling their BTC holdings. Notably, the Bitcoin price crashed just days after the police raid.  

The ominous scam is rumored to control about one percent of BTC's total circulating supply, which means that there will be more selling pressure. 

At press time, Bitcoin is changing hands at $7,142, CoinStats data shows. It is down two percent, which conveniently came after a new selling spree initiated by PlusToken fraudsters.  

Subscribe to U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

Top 10 Best Cloud Mining Sites in 2020
TOP 20 Best Bitcoin Trading Bots in 2020

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy