The market began to fall days before the PlusToken transactions actually occurred. In May 2019, addresses associated with the scam also moved funds amid the bullish market.

Once it was learned that some addresses, allegedly related to a Ponzi scheme from China, made large transactions in Bitcoin, some market analysts jumped to say that this caused the decline in cryptocurrency prices.

It is advised to investigate what really happened before jumping to wrong conclusion. Dovey Wan, founder of a cryptocurrency company and follower of the Chinese ecosystem on Twitter, reported that the addresses associated to the alleged scam had been making large transactions for some time.

During May 2019, for example, one of the Bitcoin addresses mentioned by Wan sent more than 30,000 BTC in multiple transactions. In August, another address disposed of about 38,000 BTC, that is, a very similar figure. Consequently, it cannot be said that these PlusToken transactions have led to a fall in the price of Bitcoin.

The 4 transactions, for a total surpassing 37,900 BTC, were conducted on August 13th. Coincidentally, in recent days the price of Bitcoin had lost more than 10%, going from US $11,800 until resisting above US $10,000, although there was a temporary fall to US $9,600, according to CoinMarketCap data.

However, it should be highlighted that the fall did not occur after the date of the transactions at the mentioned addresses (August 13th). At least since Saturday 10th, the Bitcoin pace has been bearish.

Not only had the transactions already occurred during the bearish market, but also Dovey Wan’s reports drawing the attention of the ecosystem to the matter, had not arrived until Wednesday 14th. One day after the movement of almost 38,000 BTC and some more after Bitcoin began to fall in the market.

It can be observed that the movements made in May occurred within a period of about 15 days, during which the price did not fall. On the contrary, Bitcoin began the month of May above US $5,300 and by the 18th it had earned about 38%, surpassing US $7,200. Besides, in that period it reached peaks above US $8,000.

Although these events were very similar, they showed very different behaviors in the market. Thus, it is hard to identify the alleged influence of the PlusToken case on the price of Bitcoin. The TokenAnalyst firm considers it unlikely that this has affected the market. One of the analysts, Sid Shekhar, said in this regard that it appears that the PlusToken addresses that were moving funds are not associated with any exchange house. However, Wan mentioned Bittrex and Huobi regarding the case, besides showing the possibility that the company was also operating through Binance.

There have been cases of whales making large transactions in a short time period that have been seen to affect the price of Bitcoin. Events such as failures in some exchange houses or the emergence of large projects such as the Facebook project may also influence it. However, this particular case raises the paradoxical question of how an event that has not even occurred can affect the price of Bitcoin.

By Willmen Blanco


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