According to studies by Chainalysis, the recent fall in the price (and several others in the past two years) is far from being solely due to the conditions of a conventional market, he was “manipulated”.
No, these large downward fluctuations would be caused in particular by the liquidation of thousands of bitcoins by certain former officials of the infernal trio of crypto scam, I named: OneCoin, CloudToken and PlusToken. And not only is it not reassuring, but above all it seems to be far from over …
The scams in the crypto industry, the one that brews billions, sometimes in the most total amateurism, are, so to speak, part of the decor.
We knew the toxicity of scams for investors stripped of their assets, disgusting them durably from the world of crypto and hampering its growth. We now see more globally, that these scams continue to negatively impact the entire sector, sometimes long after their conclusions (whether judicial, or of the order of the exit scam, including the most deadly).
This is one of the teaching studies carried out by Chainalysis which tend to demonstrate the correlation between the liquidation of crypto-assets resulting from the biggest scams of recent years and the recent price falls difficult to explain by any context. However, the amounts concerned are so substantial that they become likely to impact prices.
OneCoin, More Token and Cloud token constitute the sad trio of head having given birth to monstrous whales whose movements thus make the whole market Cap tremble. Remember that these 3 VIP scams have reached a total of almost $ 10 billion, causing hundreds of thousands of victims.
And what is certain, that despite a few dozen arrests in these 3 cases, there are still many who are able to continue to sell thousands of Bitcoin causing the market to rock. The technique is not the most recent, but in a context of euphoric market, she just saw herself less.
Lasting and profound consequences
By studying the movements of cryptoactive agents known to have been affected by these different Ponzi, Chainalysis was able to draw a number of lessons, and in particular an obvious correlation between their spillage on the market, and market fluctuations.
The example More Token – considered the biggest Ponzi of all time, sorry speaks volumes: 180,000 BTC, 6,400,000 ETH, 111,000 USDT and 53 OMG (Omisego) have been identified as related to this scam. Their circulation, in particular via the exchange Huobi, allowed to highlight sharp patterns, as the following graph demonstrates
The worst, yet to come?
If the news is not happy, it is also that the phenomenon may still be far from having to dry up. Indeed, colossal sums coming from the real Godzillas of the scam still sleep everywhere the scammers may be just waiting for a market recovery to sell their ill-gotten gains, at the risk of immediately stifling any recovery …
It is estimated that the bitcoins of PlusToken have been dispersed across 71,000 unique addresses, thanks to tens of thousands of transactions, most often using mixing services like wallet Wasabi, making any tracking complicated.
Finally, if the price of Bitcoin falters under the pressure of the liquidation of thousands of coins, how not to worry for Ethereum: according to Chainalysis, it is not less than 790,000 ETH fruit of the scam, which have not moved since months…
Nice to meet you, it’s Hellmouth! Editor-in-chief of Bitcoin, the crypto media you are honoring to survey right now (well done, you have taste).
Crypto-enthusiast of the second hour, nothing is more important to me than supporting the global adoption and democratization of the treasures that the blockchain offers us.
I write articles between two cocktails in Tahiti, my adopted island, and do not hesitate, if the opportunity arises, to feast on a plump scam or a little too enterprising Ponzi pyramid.
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