The Bitcoin Yo-Yo Effect; Are Chinese Ponzi Scammers to Blame?

It’s all over the crypto networks – Bitcoin has gone into a new frenzy, several times just today. The cryptocurrency ultimately seems to be settling down at just above $10k at the time of writing, but many fear we haven’t seen the end of it.

As CoinMarketCap’s estimates go to show, today’s lowest drop is actually a record one in the past 7 days. Still, many predict that we haven’t seen the last of the Bitcoin yo-yo, with opinions contrasting much more drastically on the matter of fearing it.

More precisely, people are looking for an explanation to the drastic fluctuations, failing to pin these occurrences to the events in global inter-government relations. Still others are more concerned about the underlying meanings of these events, and the way they reflect on Bitcoin’s image as a ‘safe haven’, decentralized and away from authority influences.

Market Shifts by the Hour

It may have taken Bitcoin slightly longer than an hour, but as NewsBTC’s article claims, its price has been in the four-digit zone four times since the rally started back in April. Apart from the analysis, they also included a more positive outlook on the situation, referencing to Ciphrex co-founder and CEO, Eric Lombrozo’s statement in the aftermath of today’s events:

“Bitcoin price dips for the gazillionth time, prompting wild reports on the end of the world and causing pundits to invent explanations.

Predictions: In a week, nobody will remember this dip anymore. In a month the same thing will happen again and people will panic again.”

Still, when looked directly, numbers are somewhat more alarming, especially considering the uncertainty of keeping the long-term moving average. With the bulls failing at the task, more estimates divert from the one illustrated above. Experts expect to see further bearish pressure which would expose lower weekly supports, and a landing zone closer to $8.500 than to the $10.000 mark.

The Ponzi Scheme Rocking the Boat

Today’s fluctuations have caused great stirrings among concerned parties, with the instinctive approach being finding someone to blame.

Nevertheless, Primitive Venture’s founding partner, Dovey Wan, has looked into the matter more closely, presenting allegations that have ultimately brought about the dumping of Bitcoins, and consequently, the current up-and-down syndrome.

In a series of public statements and posts to her social media accounts, Wan has been actively drawing the public and authorities’ attention to PlusToken. This was the name of an investment group which was eventually found guilty of pyramid fraud back in mid-2018. In a more active approach, she additionally presented wallet addresses of several cryptocurrencies – Bitcoin, Ether and EOS – found to be in on the conspiracy. All this was done in order to prompt authorities, exchange platforms and other similar services to blacklist them.

Wan goes on to point out to a more vital discovery – the arrest of one of the crucial team members performed by Chinese police. According to official records, the damage this Ponzi scheme has managed to afflict is estimated at no less than $3billion.

Still, what she claims is making even more harm is the massive dumping of 50-100 BTC amounts that have been changing the market’s course since the past few days. These have been recorded on the Binance exchange, which is also a suspected conspirator in the eyes of Wan.

Although other public figures and authorities are also moving forward to resolve the issue, both PlusToken and Bitcoin’s rally seem to be keeping their current course, hopefully not for long.

Share this

Share This