Earlier this week, approximately 7,000 ether (#ETH🔥🔥🔥🔥 ), valued at around $16 million, was transferred to cryptocurrency exchanges. These funds were previously seized in connection with the PlusToken Ponzi scheme, which gained notoriety as one of the largest #CryptocurrencyScams in history. This movement has sparked speculation that a broader sale of ether may be on the horizon.
PlusToken Defrauded Over 2.6 Million People and Acquired #Cryptocurrencies Worth $14 Billion
The PlusToken Ponzi scheme operated between 2018 and 2019, during which time it attracted over 2.6 million investors. These individuals were deceived by false promises of high returns, leading the company to accumulate over $14 billion worth of cryptocurrencies. Chinese authorities later intervened, seizing various assets, including bitcoin and ether.
Analyst Predicts a $1.3 Billion Sale of Ether
According to an analyst from OXT Research, known by the alias ErgoBTC, the recent movement of ether may signal an upcoming sale of as much as $1.3 billion worth of the cryptocurrency. The analyst pointed out that these transactions follow a pattern similar to earlier attempts to disguise the sale of bitcoin, which occurred in 2019. This suggests that a significant sale of ether could take place in the coming weeks or months.
Cryptocurrencies Handed Over to Chinese Company for Sale
Court documents reveal that the seized assets, including ether, were handed over to a Chinese company, Beijing Zhifan Technology Co., tasked with selling the assets and using the proceeds for investor restitution. Most of the #bitcoin☀️ involved in the seizure has already been sold between 2019 and 2020, generating around $1.3 billion.
Ether Remained Dormant Until August 2023
While most of the bitcoin was sold years ago, ether remained inactive in various wallets until August 2023, when it was redistributed to 294 new addresses. This raised speculation that a major sale of ether could be imminent. On Tuesday, an additional 15,700 ether were moved from these addresses, signaling increased activity around these wallets.
Further Transfers and Potential Market Impact
Of the 15,700 ether moved, approximately 7,000 were sent to several major cryptocurrency exchanges, including BitGet, Binance, and OKX. This move suggests that further sales are likely, and the distribution of ether is probably not over yet. ErgoBTC notes that this activity represents a new supply overhang for ether, which could have an impact on its price.
Supply Overhang as a Potential Factor Affecting Ether’s Price
These movements introduce new ether supply to the market, potentially putting downward pressure on its price. While it remains uncertain when and in what volume the ether will be sold, the situation indicates that the market could experience significant fluctuations depending on the future course of these transactions.
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