Over the past few months, the crypto industry has been awash with news about the PlusToken Bitcoin scam, which allowed scammers to accrue billions worth of digital assets over the course of a year-long operation.
For some context, PlusToken was a cryptocurrency “wallet” and storage solution that gave users returns on their deposits and also gave refers rewards, acting much like a classic Ponzi scheme but with a cryptocurrency backdrop.
Earlier this year, a number of ringleaders of the operation were arrested in Vanuatu, though a few individuals remain missing abroad. While few in the West have heard of the scheme, for it was operated mainly out of China, data indicates that the firm stole upwards of $3 billion of cryptocurrencies, mainly Bitcoin, at its peak.
Related Reading: Why Bitcoin’s Plunge to $6,500 Might Have Been the Bottom
And according to analyses by on-chain analyst Ergo, the remaining ringleaders of PlusToken have likely been selling “a little over 1,100 BTC per day” via mixers and exchanges, which is approximately 60% of the daily block rewards issued by the Bitcoin network, and has been for at least the past four months.
If PlusToken and other scams have really been liquidating millions of dollars worth of Bitcoin a day, that would explain why the leading cryptocurrency’s price has bled out by some 50% over the past six months
Data shows, however, that the selling pressure of these coins on the underlying BTC spot market is starting to slow, presenting a potential bullish case heading forward into the end of 2019 and into the start of 2020.
PlusToken Selling Abating, Presenting Bullish Bitcoin Case
Ergo’s latest analysis has found that the PlusToken coin distribution has “dropped off a cliff,” purportedly falling far below 500 coins per day, under half of what was seen just a week or two ago.
In fact, he noted that over the past week, the average coin distribution from Bitcoin wallets purportedly owned by the scammers, has collapsed well under 300 coins per day, which coincides with an uptick in public awareness about the liquidations.
Recently I wrote a thread regarding the multi-billion dollar PlusToken scam it’s potential market impacts.
A few days later, the exchange rate fell out of bed and the bloggers attached themselves to this narrative for a few news cycles.
So what’s the status of the PT coins? pic.twitter.com/V8r78P4gB8
— ∴ Ergo ∴ (@ErgoBTC) December 13, 2019
With there now being hundreds of coins fewer being sold on the open market, Bitcoin could start to form an uptrend once again, that’s if you believe that the sales of cryptocurrency by the aforementioned scammers formed the six-month-long downtrend that sent BTC from $14,000 to $7,000.
Related Reading: Why Bitcoin Price Crossing $10,000 is so Important: Top Investor Explains
This isn’t the only trend that should have bulls over the moon, so to speak. Blockchain Capital partner Spencer Bogart, whose firm just reported that it expects BTC to “blow past” its all-time high of $20,000 in 2020, said in a recent interview that the fundamentals are leaning in favor of bulls.
One of Bogart’s first points conveyed to the Bloomberg audience is that Bitcoin remains a very useful network from a transactional standpoint, “processing $1 billion to $3 billion worth of transactions daily,” which is a far cry from when the cryptocurrency was deemed “a joke” just years ago.
He also added that the American public’s sentiment on Bitcoin remains widely positive, implying that long-term buying pressure for the cryptocurrency exists, despite the downturns seen.
Related Reading: Crucial Indicator Shows a Massive Bitcoin Move is Likely Following 30% Drop
Featured Image from Shutterstock
Credit: Source link