Cryptocurrencies

Bitcoin Drop Not Likely Triggered by Scam Dump, Researcher Says

Ponzi scheme liquidation cited for latest crypto downdraft
TokenAnalyst says disputed coins moved earlier on blockchain

A collection of bitcoin tokens sit in this arranged photograph in London, U.K., on Tuesday, Jan. 9, 2018. On Wednesday, billionaire Warren Buffett said on CNBC that most digital coins won't hold their value.Photographer: Chris Ratcliffe/Bloomberg

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By Olga Kharif

August 15, 2019 at 4:29 PM EDT

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The liquidation of cryptocurrencies tied to an alleged ponzi scheme has been among the assorted reasons cited by market pundits for this week’s slide in digital assets. A closer looks suggests that may not be the case.

Speculation mounted that the supposed coin dump was the catalyst mounted when Bitcoin and a slew of other coins suddenly crashed around midday Wednesday in New York. Crypto influencer Dovey Wan tweeted that participants in a PlusToken scam may be selling thousands of Bitcoins in small batches. However, a review by researcher TokenAnalyst shows that only a few addresses associated with PlusToken had any material balances of Bitcoins and moved funds recently.

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