A wallet reportedly belonging to PlusToken withdrawn 26 million EOS, will EOS price dump in the making?
The culprit behind the Ponzi PlusToken plan transferred more than 26 million EOS from one of the wallets associated with the project to an unknown address. In the past, PlusToken has been accused of being involved in a sharp drop in Bitcoin price. Therefore, with this event, quite a lot of people may be asking if there will be any short-term consequences for EOS?
🚨 🚨 🚨 🚨 🚨 🚨 26,316,339 #EOS (67,139,663 USD) transferred from PlusToken to unknown wallet
— Whale Alert (@whale_alert) June 22, 2020
PlusToken has transferred over 26 million EOS, is EOS price okay?
PlusToken is a Chinese project that started a few years ago as a cryptocurrency wallet offering suspiciously high payback rates for users. In order to invest in the platform, customers are required to buy PLUS tokens with Bitcoin and Ethereum. The strong development of the project caused its popularity in China to skyrocket, and the price of tokens increased to $ 350. Even so, PlusToken did not live peacefully swimming lawmakers constantly suppress the project. In it, Beijing claimed that PlusToken was an illegal Ponzi scheme, and Chinese law enforcement agents arrested six people involved in it.
Although the majority of PlusToken officials remain behind bars, asset liquidation still occurs. Specifically, an EOS wallet has been reported associated with the Chinese project that sent EOS 26,316,340 to an unknown address. This total EOS is equivalent to over $ 67 million.
History shows that when PlusToken has moved a significant amount of assets, the price of the corresponding token has undergone an adverse price development in the short term. Specifically, earlier this year, PlusToken laundered 13,000 Bitcoin (with an estimated value of $ 118 million) through a variety of mixing services. At that time, Bitcoin dropped $ 500 from $ 9,200 and continuously affected the altcoin market.
Therefore, we can conclude that PlusToken’s withdraws can cause Bitcoin’s price volatility, and they are significantly correlated with Bitcoin’s price decrease.
EOS/USD 4 hours chart | Source: Tradingview
So it is interesting to watch how EOS works in the coming hours. Especially when EOS previously reached an annual high of $ 5.5 in mid-February before hitting a bottom of $ 1.40 during the most violent days of the COVID-19 pandemic.
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