Well-known Bitcoin analyst links altcoin price surge to PlusToken scam
- Analyst Jacob Canfield believes that PlusToken scammers are using crypto exchanges and OTC brokers to trade their stolen funds for other crypto tokens.
- He advised that while traders can identify near-term dips to buy altcoins, they should exit their positions on the first signs of deep pullbacks.
A well-known crypto market analyst, Jacob Canfield, has alleged that there has been market manipulation in altcoin trading this year. Canfield is popularly known for accurately predicting Bitcoin’s 2020 price rally. He linked the reemergence of otherwise underperforming cryptos like Ethereum and EOS to PlusToken. PlusToken is a Ponzi scheme in which the company disguised as an investment firm and stole over $3 billion from its customers. The stolen funds included 70,000 bitcoin, 790,000 ether, and 26 million EOS tokens. This gave them enough capital to manipulate the altcoin market.
If [Plustoken scammers] are using their capital to push the Ethereum market, then they can push its prices back to $300, $500, $600 and even $1,000,” said Mr. Canfield. “They can also set up traps for short-sellers and continue to push the short-seller cascade in thin-order markets.
Canfield’s statements come at a time when altcoins are significantly outperforming Bitcoin. He believes that PlusToken scammers are using crypto exchanges and OTC brokers with closed order-books to trade their stolen funds for other crypto tokens. Despite massive dump fears, Canfield feels that the crypto market will keep rising. He advised that while traders can identify near-term dips to buy altcoins, they should exit their positions on the first signs of deep pullbacks.
He also warned traders to look out for crypto wallets that belong to the PlusToken scammers. Canfield noted that any withdrawal would alert the traders of a potential bearish correction.
What I’m watching is for those PlusToken coins to move. Potentially, that could be a tapping indicator of the altcoin market.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
