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Bitcoin Price Drops Linked to PlusToken Scam by Chainalysis: Details

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Mon, 12/16/2019 - 16:27
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  • The Bitcoin price might soon see a drop below the $7,000 level, and the PlusToken scam could be the real reason why

Cover image via 123rf.com
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According to blockchain sleuth Chainalysis, the Bitcoin price could continue bleeding as long as those behind the PlusToken scam keep cashing out their coins. In its recent study, the firm suggests that there is a direct link between the price action of the leading cryptocurrency and the biggest crypto scam in history.  

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PlusToken keeps dumping, Bitcoin keeps tanking 

The graph below shows how PlusToken transactions are correlated to the price of Bitcoin. The company hypothesizes that the value of the top cryptocurrency drops every time when fraudsters sell their coins on the OTC brokers. For example, Bitcoin's bull-purging 20 percent drop on Sept. 25 back that happened just days after scammers cashed out about $34 mln worth of BTC.    

Chainalysis
image by chainalysis.com

To make things even more interesting, Bitcoin started its 48 percent correction from the yearly all-time high of $13,700 right after PlusToken got shut down by the Chinese police in early July. 

As reported by U.Today, numerous cryptocurrency influencers called attention to the fact that PlusToken scammers are the ones who pull all the strings in the Bitcoin markets. 

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20,000 coins are yet to be cashed out

PlusToken managed to pocket more than $3 bln worth of BTC from gullible investors. It is believed to be the biggest scam in the crypto space ever, eclipsing the infamous BitConnect Ponzi scheme and other heavyweight competitors.    

Chainalysis estimates that nearly 20,000 BTC ($150 mln at press time)  is still in the hands of PlusToken scammers, meaning that they could inflict more selling pressure on Bitcoin any day from now.  

“That’s certainly something to consider when you are thinking about where the price is going, at least in the short term. It could be, according to our research, continued downward pressure,” Kim Grauer, senior economist at Chainalysis told Bloomberg

 At press time, Bitcoin continues to hover above the $7,000 level, CoinStats data shows.  

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.

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Tue, 03/31/2020 - 17:59
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  • Ripple's development platform proposes to add an opt-in privacy feature to the XRP Ledger

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Ripple's development arm Xpring has come up with a new proposal to add an "opt-in" privacy feature to the XRP Ledger. It's now up to the community to review the proposal via GitHub.   

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Private transactions  

In his blog post, Warren Paul Anderson, the head of the Xpring developer community, explains that XRP can be made anonymous with the help of 'blinded tags' that would obfuscate the source and destination tags from anyone apart from from the originator and the source of a specific transaction. 

In such a way, private payments on the XRP Ledger would appear 'random' to third parties.  

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Streaming payments  

Xpring also made an announcement about the Xpring Wallet adding support for the STREAM protocol. It allows users to send and receive in the form of encrypted packets of money or data over blockchain-agnostic Interledger by establishing an HTTP connection.  

All developers can now integrate streaming payments into their applications with the help of Testnet XRP.

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.

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