As a seasoned analyst with a decade of experience in the crypto market, I find myself both intrigued and concerned by this latest development involving PlusToken and Ethereum (ETH). Having closely followed the rise and fall of various scams over the years, I’ve come to expect the unexpected when it comes to these schemes. The transfer of 7,000 ETH from wallets tied to PlusToken to several exchanges is a reminder that even the most dormant of digital skeletons can stir at any moment.
A study by ErgoBTC analyst OXT has uncovered that approximately 7,000 Ether tokens, worth around $16.7 million, linked to the infamous PlusToken Ponzi scam have been moved to various exchanges, such as BitGet, Binance, and OKX. This revelation, disclosed on Wednesday, suggests a possible liquidation of the entire $1.3 billion in Ether seized from the scheme.
In a nutshell, PlusToken, a scheme that swindled countless investors predominantly from China and South Korea, was among the biggest cryptocurrency Ponzi schemes. It ran successfully from 2018 to 2019 until it eventually crumbled.
The structure, resembling a common pyramid, lured investors with the promise of monthly earnings reaching up to 16%, given a minimum investment of $500 in digital currencies such as Bitcoin and Ether. By 2019, more than 2.6 million people had unfortunately become victims of this fraud. Local enforcement agencies eventually took action, seizing over $14 billion worth of cryptocurrencies, including approximately $60,840 in Bitcoin, as well as an unspecified amount of Ether. The total market value of these digital currencies at the time was around $1.2 trillion, with a 24-hour trading volume of approximately $27.7 billion.
Patterns of ETH Redistribution
As an analyst, I’ve noticed an interesting development with Ether â it appears to have stirred again after a prolonged silence since 2021, when the wallets connected to this scheme showed signs of activity last. Remarkably, the current redistribution of ETH seems to mirror the camouflaging tactics observed in 2019 during the sale of Bitcoin confiscated from PlusToken. This observation leads me to speculate that the full liquidation of the estimated $1.3 billion in seized Ether could be imminent.
Previously disclosed court records showed that the confiscated cryptocurrencies were given to a Chinese firm, Beijing Zhifan Technology Co., for the purpose of exchanging them into cash to compensate victims. Most of the Bitcoin was sold off between 2019 and 2020, but a substantial amount of Etherium remained unspent in various mixing wallets.
More recently in August, a large sum of 542,000 ETH, worth around $1.29 billion, was transferred into 294 fresh wallets. In the course of this week, a portion of those holdings, specifically 15,700 ETH, exited these accounts, with 7,000 ETH being transferred to trading platforms.
Ethereumâs Market Struggles
Recently, Ether, currently valued at approximately $2,400, has experienced heightened stress. Despite repeated efforts to surpass the $2,700 barrier, it has encountered difficulties due to a general crypto market slump. Additionally, rival platforms such as Solana have been making significant strides, adding to Ethereum’s market complications.
Currently, the second largest cryptocurrency, Ether, is 51% lower than its record high of $4,891, which it reached in November 2021. Interestingly, Ether’s market capitalization stands at approximately $289.3 billion, experiencing a slight decrease of 1.2% within the last day.
In the heat of discussion, Bloomberg ETF analyst Eric Balchunas expressed on X that Ethereum may not offer the same level of security and reliability as Bitcoin. His statement sparked controversy, leading to a barrage of accusations from Ethereum supporters that he was disseminating false information. However, in response to these criticisms, Balchunas later withdrew his post.
In simpler terms, if PlusToken sells all the remaining Ethereum it holds, there might be too much Ethereum available for purchase, which could cause fluctuations in its price due to increased supply in the short term.
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2024-10-10 11:24