The price of Ethereum (ETH) has taken a hit recently, with experts attributing the decline to a significant development involving the Chinese government. Reports suggest that the Chinese authorities are actively promoting the sale of a large amount of Ethereum that was recovered from the infamous Plustoken pyramid scheme, one of the biggest cryptocurrency scams in history.
In early August, data revealed that the Chinese government had transferred 7,000 ETH, valued at over $1.3 billion, to a cryptocurrency exchange. This move is believed to signal the beginning of a mass auction of the remaining 542,000 ETH acquired from Plustoken, which has been largely untouched since mid-2021.
Plustoken, a multi-billion dollar crypto scam that operated from 2018 to 2019, came crashing down, leading to the seizure of approximately 194,000 BTC and 830,000 ETH by Chinese authorities. While most of the bitcoins were sold off by 2020, the Ethereum holdings remained largely intact until now.
The involvement of China in the Ethereum market, along with other major players like the Ethereum Foundation, is expected to exert pressure on the market in the coming weeks. The potential influx of a significant amount of ETH from the Plustoken scheme could further impact the price of Ethereum and contribute to bearish market sentiment.
As the news of China’s potential dumping of recovered Plustoken ETH spreads, investors and traders are closely monitoring the situation to gauge the extent of selling pressure that may follow. The uncertainty surrounding the market dynamics in light of this development has added a layer of complexity to the already volatile cryptocurrency landscape.
It remains to be seen how the Ethereum market will react to the influx of recovered ETH from the Plustoken scam and whether this will lead to further price fluctuations in the near future. As the cryptocurrency market continues to evolve, events like these serve as a reminder of the risks and challenges associated with investing in digital assets.