FUD of the Week: China and US Treasury Unsuccessful in Attacking Bitcoin
This week as we reported, China Police seized more than $4.2 billion worth of the crypto asset from the PulsToken Ponzi scheme.
However, it was the officials informing the public, as the crypto market has known all along, about how and where these funds have been moving thanks to the transparency of the blockchain technology.
Researcher Ergo has been updating the community about the sale of these tokens over the years, which peaked in mid-2019. Only about 15k of the BTC are left of the original 201k BTC now.
What is really interesting about China's latest summary is that the authorities might be the ones involved in the sale of crypto assets all this time.
“Chen Bo, the mastermind of PlusToken (arrested in June 2019), was entrusted with selling PlusToken's BTC, via a third party business, on behalf of the CCP?” commented ErgoBTC adding, “In return, he only gets 8 years in the gulag for architecting a multi-billion $ Ponzi? What kind of communism is this?”
Wu found that, Chaindigg, an company that assisted the Chinese police in selling PlusToken worth billions of dollars crypto in 2019, was called China's Chainanalysis. Its second largest shareholder is co-founder of Huobi, and its third largest shareholder is Binance shareholder, pic.twitter.com/VlrZ1sGNSs
— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 28, 2020
The good news about this all is the market won’t be getting smashed as most of the Bitcoin has already been dumped into the open market through OKEx and Huobi. It was this sale-off at that time in mid-2019 that sent BTC crashing from $14k to $6k in six months.
There isn’t really anything left to send to China's national treasury as they already sold most of it all. However, the same can’t be said of ETH and other altcoins, including LTC, EOS, DASH, XRP, DOGE, BCH, and USDT.
“Most importantly, this can be seen as the first government attack toward Bitcoin via liquidity games and price manipulation. IT FAILED,” said market analyst David Puell.
The price of cryptocurrencies had already taken a big drop before this news hit the market, sending BTC to nearly $16,300. Today, the crypto market is actually green.
While “false, it should be taken seriously,” said Puell.
Regulating self-custodied wallets is already forced upon exchanges in countries like Switzerland, Singapore, and the Netherlands.
While the crypto community continues to oppose these regulations, more rules and laws are expected, which means “privacy and ownership, even more so than price, will be the most contested subjects in Bitcoin in the next few years.”
The implication of this in the US on the price of Bitcoin in the long term, however, isn’t expected to change anything.
“The fundamentals remain the same, so in my view, even if we continue correcting ($14k, 12k, or whatever), the cause would be simply out of major market actors taking profits with the aim to buy cheaper,” Puell said.