Unexpected Factor That Suppressed Bitcoin Bulls in 2019 Is Now Gone

If you’ve been involved in the Bitcoin market over the past year, you know of PlusToken.

PlusToken was a Ponzi scheme with a focus on the Asian cryptocurrency space that was active in 2019. In offering depositors of Bitcoin, Ethereum, EOS and other cryptocurrencies high levels of interest, the operators of the scam managed to garner billions worth of assets. Per some reports, the scam held upwards of $3 billion worth of largely BTC and ETH at its peak.

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Eventually, the pyramid collapsed; in around July of 2019, the operators of the scam began restricting withdrawals, then began to run from the authorities.

Some ringleaders escaped; others were caught by authorities.

Regardless, from July to as late as early this year, the remaining operators of PlusToken dumped millions of dollars of Bitcoin on the market.

Analysis by the pseudonymous on-chain analyst “Ergo” argued that there was around 1,000 BTC — then worth around $8,000,000 — sold every day by the scammers.

Reports from chain analysis companies suggest that PlusToken is largely what caused the crash to $6,400. Some argue that PlusToken was also the catalyst for the early 2019 rally to $14,000.

Chart of BTC's price action in 2019 from TradingView.com

Fortunately for bulls, reports have just revealed that all the leaders of the multi-billion-dollar scam have been apprehended.

Operators of Multi-Billion-Dollar Bitcoin Scam Apprehended

According to Dovey Wan, founding partner of Primitive Ventures, all members of the PlusToken leadership have been arrested:

“27 core PlusToken team members are all arrested by Chinese police, the biggest crypto scam in the history so far, $3B worth of crypto is scammed… there are a series of legal enforment actions in past 12 months as it’s core team are all over the world took quite a while.”

FINALLY

27 core PlusToken team members are all arrested by Chinese police, the biggest crypto scam in the history so far, $3B worth of crypto is scammed

Bulls now have little to no baggage 🧳 and lets send it to the 🌕 pic.twitter.com/SiDJVSqA5J

— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) July 30, 2020

The commentator suggested that this is pivotal for the Bitcoin bull case as the coins they still hold are now unlikely going to be sold.

It isn’t clear what PlusToken’s administrators had when they were arrested. However, $450 million worth of cryptocurrency was moved from their addresses over the past few months. As reported by NewsBTC, DTC Capital’s Spencer Noon wrote on the matter:

“This week the following #PlusToken funds have been on the move to exchanges and new addresses for mixing: – 22k BTC ($203m USD) – 789k ETH ($183m) – 26m EOS ($68m) – 20m XRP ($4m). The big question: can the crypto markets absorb this volume or are we headed lower?”

Wan, citing information she knows, suggested the…