One of The Main Reason Behind Recent BTC Price Drop: Ponzi Scheme PlusToken
What is PlusToken?
PlusToken is a China-based “cryptocurrency wallet” that has all of the trappings of a typical cryptocurrency Ponzi scheme: it promised its “investors” monthly returns of anywhere from 10 to 30 percent in its eponymous token (PLUS), which traded on such popular exchanges as Huobi and Bithumb and The Plustoken admins said that the rewards stemmed from “exchange profit, mining income, and referral benefits. This attracted more than 200,000 Bitcoin, 789,000 ether, and 26 million EOS, as reported by Chainalysis.
Chainalysis Report – Bitcoin Scams
According to Chainalysis estimate PlusToken conspirators have sold about 25,000 Bitcoins and another 20,000 Bitcoins are spread out across more than 8,700 anonymous crypto addresses. Additional coins such as Ether were also used to bilk investors. Furthermore, Chainalysis claims that $185 million in stolen bitcoin have already been liquidated by individuals related to PlusToken.
In the result bitcoin slipped 4 percent, to $6,800 from $7,085 in just seven minutes according to data from Coinbase same as it is ether took a bigger hit, dropping 7 percent from $140 to $130. Neither had seen such lows since Nov. 25, when the crypto markets suffered a temporary selloff.
Now it is called a billion-dollar crypto scam and PlusToken is believed to be one of the largest crypto-related Ponzi schemes, duping investors for an estimated amount of around $2.9 billion.
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