PlusToken crashes Bitcoin’s price again

PlusToken crashes Bitcoin’s price again

By Benson Toti - min read

A combination of factors has crashed the price of Bitcoin in recent days, with global markets continuing to suffer from the impact of coronavirus, Bitcoin potentially has an uphill struggle to regain its weekend losses

Bitcoin suffered losses of 13 percent over the weekend, with global markets potentially on the brink of recession. Oil markets also suffered a slump amid concerns the full impact of coronavirus is yet to be seen.

To make matters worse for bulls, Bitcoin’s sharp fall over the weekend has also been speculated to be PlusToken rearing its head once again, flooding the market to sell off its enormous supply of Bitcoin.

Price was trading as low as the $7,700-mark, wiping out Bitcoin’s steady price climb since January.

Suffice to say, Bitcoin’s weekend crash has shown downward pressure from multiple fronts has proved too much for the coin’s price. From coronavirus, global markets crashing and further sell offs from PlusToken wiping an estimated $30 billion dollars from the crypto markets.

Disguised as a high-yield investment scheme, PlusToken lured investors from Korea and China, offering 9 to 18 percent monthly returns. Investors were told their capital was being used to fund the development of cryptocurrency projects like trading exchanges, the profits from which they would get their returns.

In fact, investors were paying for the so-called ‘returns’ of older members and were heavily incentivised to recruit their friends and family as new investors: classic Ponzi scheme, right?

Estimates by OXT Research say that PlusToken stole 1 percent of the total supply of Bitcoin, worth a staggering $2.9 billion.

Cases such as PlusToken can have a significant impact on the price of Bitcoin. Some of the bearish price-action seen in 2019 was also attributed to sell offs from the scheme, and holders will be hoping PlusToken will soon run out of their supply of Bitcoin; something analysts can determine by monitoring the transactions and movements of the wallets with PlusToken’s funds.