As soon as it was known that there were addresses allegedly linked to a <a href="https://www.cryptoknowmics.com/crypto/china-alleged-ponzi-plustoken-scheme-massively-gets-rid-of-its-bitcoin/">Ponzi scheme</a> originating in China, making large transactions in bitcoin, some market analysts went ahead to ensure that this was the reason for the decline in the price of the cryptocurrency in recent days. However, is it necessary to be alarmed at any adverse event that the ecosystem is experiencing? In this and other cases, it is best to investigate before you speak.

Precisely, I had to cover that event for CryptoNews. Investigating the report of Dovey Wan, founder of a company of cryptocurrencies and Tuitera of the Chinese ecosystem, I found something interesting: the addresses linked to the alleged scam had been making significant transactions for some time.

There is a clear example in May. During that month, one of Bitcoin's addresses mentioned by Wan sent more than 30,000 BTCs in multiple transactions. In August, another address came to "undo" some 38,000 BTCs. That is a very similar figure. So can we assume that this time PlusToken's transactions dropped the bitcoin price?

The four transactions totaling more than 37,900 BTC were executed on August 13. Coincidentally, in recent days the price of bitcoin had lost more than 10%, going from USD 11,800 to resisting above USD 10,000, although there was a momentary drop to USD 9,600, in CoinMarketCap data.

However, here, it is necessary to emphasize that the fall did not occur after the date of the transactions in the directions as mentioned above (August 13). At least since Saturday 10, the bitcoin rate has been bearish.

Not only the transactions already occurred in the middle of the bear market. Also, the reports of Dovey Wan, who called the attention of the ecosystem on the matter, did not arrive until Wednesday 14. A day after the movement of almost 38,000 BTC and a few more after it began to drop bitcoin in the market.

However, also, if we take as a point of comparison the transactions of May, we will see that the movements were carried out in a lapse of about 15 days, during which the price did not fall. On the contrary, bitcoin started the month of May above USD 5,300. By the 18th of that month, it had gained about 38%, surpassing USD 7,200. Furthermore, in that period it had peaks above USD 8,000.

The events were very similar, with very different behaviors in the market. What was then the supposed influence of the PlusToken case on the bitcoin price? TokenAnalyst considers it unlikely that this affected the market. One of its analysts, Sid Shekhar, assured in this respect that it "does not seem" that the addresses of <a href="https://twitter.com/hashtag/plustoken">PlusToken</a> that were moving funds are associated to some exchange house, despite the fact that Wan mentioned Bittrex and Huobi in the case, as well as the possibility that the company was also operating through Binance.

We have seen how cases of whales doing large transactions in a short time have previously affected the price of bitcoin. They can also influence events such as failures in some exchange houses or the emergence of large projects such as Libra Facebook. However, this particular case raises a paradoxical question: how can bitcoin price affect an event that has not even occurred?

PlusToken Case: Could a transaction have affected bitcoin's price without happening?

I am an industrial engineer specializing in blockchain. Enthusiast of cryptocurrencies and writing the latest news regarding the Crypto world.

PlusToken Case: Could a transaction have affected bitcoin's price without happening?

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