Show the movement of the wallets connected to the Ethereum price Plus Token
TLDR
Chinese government seizes 7,000 ETH ($16.7 million) from Plus Token scam after Chinese government destroys holdings
The cryptocurrency market is closely watching developments surrounding Ethereum (ETH) as the Chinese government begins selling digital assets seized from the Plus Token scam.
The movement of 7,000 ETH, worth an estimated $16.7 million, on wallets linked to the fraud scheme has raised concerns about the market impact.
In the year A Chinese Ponzi scheme called Plus Token, which defrauded around 2.6 million users in 2018 and 2019, has been seized by Chinese authorities out of various cryptocurrencies worth $14 billion.
While a significant portion of Bitcoin holdings sold off between 2019 and 2020, Ethereum holdings have remained largely untouched until recently.
According to ErgoBTC, an analyst from Oxt Research, wallets linked to the Plus Token issue have shown activity after a three-year hiatus.
In early August, for the first time since 2021, ETH remnants from the multi-billion dollar Plus Token scheme were lifted off-chain.
In the last 24 hours, 7k ETH of the remaining 542k ETH ($1.3b) have been sent to exchanges to show interest in starting to sell the remaining tokens. pic.twitter.com/tu2o7y4o4L
— ∴FreeSamourai∴ (@ErgoBTC) October 9, 2024
In the summer of 2021, a third of the 840,000 ETH was transferred to the little-known crypto exchange Bidesk and subsequently sold. The rest of Ethereum remained inactive at various ‘mixing' addresses until early August 2024.
The recent cash movement has sparked speculation as to what will happen to the remaining 542,000 ETH, valued at $1.3 billion.
This massive amount is reported to have totaled 294 new addresses.
The cryptocurrency community is particularly concerned about the market impact if the Chinese government decides to release its entire ETH holdings from the Plus Token issue.
Such a large-scale selloff could put significant pressure on the price of Ethereum, which is already showing signs of weakness.
Ethereum is currently trading below $2,400, having gained 2% in recent hours. The price movement is consistent with broader market trends and the ever-increasing volatility of foreclosed assets entering the market.
Crypto analyst Ali Martinez has been trading Ethereum in a balanced triangle pattern. A sustained close below $2,300 would suggest a more significant decline, possibly towards the $1,800 level. This technical analysis adds to the cautiousness of the market.
#Ethereum is trading in a balanced triangle! A sustained close outside the $2,300 – $2,600 range will determine the direction of the $ETH trend. pic.twitter.com/8VBATLZugw
— Ali (@ali_charts) October 8, 2024
The Plus Token issue serves as a reminder of the lasting effects that large-scale cryptocurrency manipulation can have on the market.
In the year In 2019 and early 2020, Chinese authorities sold an estimated $1.3 billion worth of bitcoins, the impact of which was notable given Bitcoin's small market capitalization at the time.
