The PlusToken scam has been consistently repelling its stolen bitcoins on the market for months. An analyst now says: This is exactly the same as Ripple’s activation of one billion XRP per month.
The PlusToken scam is now notorious. In June 2019, it was revealed that the stolen funds totaled around $ 3 billion. The bulk of these crypto assets were in Bitcoin, and the fraudsters were reportedly in possession of about 180,000 BTC, or about 1% of the total amount in circulation.
Since then, the PlusToken scam has continuously dumped its bitcoins onto the market. According to Chainalysis, a cautious estimate has so far sold 25,000 BTC and there are still around 20,000 BTC on sale. The scam brings around 1,300 BTC to the market every day.
Researchers believe the scammers are responsible for Bitcoin’s troubled price movement. Bitcoin exchange Huobi is under fire because it apparently enabled the sale of the defrauded BTC.
PLUSToken is like Ripple?
One analyst believes the PlusToken scam and subsequent sell-out is similar to another leading cryptocurrency project: Ripples XRP.
According to Alistair Milne, the company controls a disproportionate amount of XRP in circulation and has “slowly dumped it on HODL’s”. The situation is similar to the PlusToken fraud, said Milne.
It’s true that Ripple unlocks a whopping 1 billion XRPs as standard protocol every month. On December 1, Ripple unlocked another 1 billion XRP on schedule. At current prices that’s a staggering $ 225M unlocked every month.
The stated purpose is to “speed up the XRP ecosystem” – but no one knows why hundreds of millions of dollars a month are needed for such purposes.
Some unanswered questions …
The PlusToken fraud is of course outrageous, so the ripple comparison also deserves a closer look.
According to Messari, Ripple’s quarterly “transparency reports” are based on “inconsistent and vague methods”. The July 2019 report notes that XRP’s circulating supply has inflated 11.5% over the past six months, while the API claimed it only increased 4.5%.
There is another problem with Jed McCaleb’s holdings. The Ripple co-founder has about $ 20 billion in XRP that was given to him and his family. He has sold them continuously on the market and it is unclear how much he still has.
Overall, the monthly XRP activation of 1 billion is sufficient for the PlusToken comparison. All in all, it’s clear that Ripple has a few questions to answer.