In the past few months, the crypto industry has been flooded with news of the PlusToken Bitcoin scam, which allowed fraudsters to collect billions of digital assets within a year.
PlusToken was a cryptocurrency “wallet” and storage solution that gave users refunds on their deposits and also referral rewards – similar to a classic Ponzi scheme, but with a crypto background.
Earlier this year, some leaders of the operation were arrested in Vanuatu, although a few people are missing abroad. While few in the West have heard of the system, which is primarily active in China, data suggest that the company stole more than $ 3 billion in cryptocurrencies at its peak.
According to analyzes by the on-chain analyst Ergo, the remaining PlusToken ringleaders are likely to sell “just over 1,100 BTC a day” via mixers and exchanges – this corresponds to around 60% of the Bitcoin network’s daily block rewards. And that has been going on for at least four months.
If PlusToken and other scams actually liquidated millions of dollars a day in Bitcoin, that would explain why the price of the leading cryptocurrency has dropped about 50% in the past six months.
However, the data shows that the selling pressure of these coins on the underlying BTC spot market is beginning to slow down and is a potentially bullish case that continues through late 2019 and early 2020.
PlusToken is selling less and less Bitcoin
The latest analysis by Ergo has shown that the PlusToken coin distribution has plummeted and is now said to be well below 500 coins per day. So less than half of what was dumped a week or two ago.
In the past week, the average coin distribution from Bitcoin wallets that are allegedly owned by fraudsters has dropped significantly below 300 coins per day, which coincides with an increase in public awareness of the liquidations.
Now that there are hundreds of fewer coins sold on the free market, Bitcoin could start to pick up again. At least if you assume that a bitcoin dumping of the scammers was responsible for the half-year downtrend that pushed BTC from $ 14,000 to $ 7,000.
This is not the only trend that bulls should like. “Blockchain Capital” partner Spencer Bogart, whose company has just reported that it expects a new BTC all-time high of $ 20,000 in 2020, repeated in a recent interview: The fundamentals are bullish.
According to Bogart, from a transactional perspective, Bitcoin is still a very useful network that “processes $ 1 billion to $ 3 billion in transactions every day”.
The mood of the American public regarding Bitcoin is still very positive. And that means that despite the observed slowdown, there is long-term buying pressure for the cryptocurrency.