Cryptanalyst: There may be evil whales behind the rebound of BTC, ETH, EOS and altcoin markets in 2020
Crypto analyst Jacob Canfield believes PlusToken, a crypto Ponzi scheme once all the rage in China and South Korea, is behind a systematic push for BTC, ETH, EOS and larger copycats rise in the currency market.
Canfield said there are now multiple allegations that PlusToken scammers sold bitcoin and drove down the price. At the same time, he believes that these thieves may be re-entering the encryption world, manipulating the market, and leading the bull market in 2020.
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The notorious PlusToken scam
PlusToken was created around June 2018. In the bleak market of the bear market, all kinds of funds in the name of the blockchain are swiping the community and circle of friends, and PlusToken is one of the most popular ones. In short, PlusToken is a wealth management wallet, the core selling point is smart dog arbitrage, which can earn 6% to 18% monthly income. The highlight is the dynamic income. Players can enjoy 100% of the income from directly recommending the first layer of moving bricks, and 10% of the second to tenth layers.
PlusToken promises to provide high-yield investment returns to its four-level members with different rebate percentages. In early 2019, PlusToken claimed to have over 10 million members.
The organizers of the scam launched an exit strategy in June 2019, stealing an estimated 90,000 to 200,000 Bitcoin (BTC), 790,000 Ethereum (ETH), and 26 million EOS.
Retail and institutional cryptocurrency investors in Asia lost an estimated $3 billion in PlusToken, a Ponzi scheme that served as a cryptocurrency wallet and exchange service, according to 2019 findings from CipherTrace.
PlusToken is known as "the largest Ponzi scheme in the currency circle". In essence, smart dog brick arbitrage is the same as Ponzi's stamp arbitrage transaction. It is just a cover to confuse people. It encourages players to develop offline to absorb more players and funds through extremely high promotion commissions, and uses the money of new investors. Pay interest and short-term returns to old investors to create the illusion of making money and defraud more investment.
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PlusToken has a far-reaching impact on the currency circle
It is reported that PlusToken hid tens of billions worth of digital currency at that time, and many people suspected that the project party would cash out and smash the market. But it didn't. The amount of money involved in this case is so large and the number of people involved is so wide that PlusToken does not dare to act rashly. So there was no big crash.
Therefore, it is an indisputable fact that such a large amount of money is still circulating in various trading platforms. So there is reason to believe that this money is boosting the price of digital currency.
Canfield said, "A lot of analysts, a lot of really smart analysts think that PlusToken is the real driver of Bitcoin going from $3,500 all the way to $14,000. Now, how does that work? When all these people are buying Bitcoin, this removes Bitcoin from the circulating supply, so it artificially removes over 1% of the circulating supply of Bitcoin.”
“It’s creating artificial FOMO, the fear of missing out on Bitcoin. You’re going to see two things. You’re going to see a decrease in supply, but you’re also seeing an increase in demand, and that’s the economics that drive the market. So boom, when we saw the big drop in BTC prices in early 2019, we also saw bears hit an all-time high because they thought the price would go all the way back to $1,000. So when BTC broke through $4,000, a lot People are buying BTC, ETH, and EOS in a FOMO situation trying to get into those markets, creating artificial buying pressure.”
Canfield pointed out, “This is not FOMO created by free buying and selling, it’s just a small part of it. It’s artificial buying pressure due to the PlusToken scam.”
Canfield also cites Google Trends, which shows that searches for Bitcoin are not growing at the same rate as the BTC price. This, he said, shows that something is wrong with the current price trend of cryptocurrencies relative to the interest in the crypto king.
