The Coronavirus outbreak has disrupted many industries across the globe till now and has somewhat slashed China’s booming economy down to the ashes. More than the aftermath of the deadly virus, what worsened the scenario, is the panic associated with the virus that is negatively impacting China’s economy and its business deals. Most countries of the world have started curtailing all the business associations with China, as a result, the Chinese markets have been left devastated after the virus outbreak in Wuhan. Even the crypto market is China is heavily affected by the Covid 19 virus, which has led to a drastic drop in the Bitcoin prices. Though Bitcoin is referred to as the safe-haven, it could not save people at times of crisis. This is because, till now, Bitcoin has not attained that exchange status that can help people buy essentials like food and clothing with Bitcoin.
But amidst all these hue and cry associated with the virus outbreak, the BTC PLUS token scam that also contributed massively to the price drop of Bitcoins cannot be ignored. Let’s see how it impacted China’s economy.
PLUS token scam
“Plus Token” was a crypto Ponzi scheme camouflaged as a “High-yield investment program,” offering massive rewards on “investment” to unsuspecting Chinese and Korean victims. The scheme offered monthly returns on investment at the rate of 9% to 18%, larger investments getting more rate of interest. The scheme was closed down in June 2019, after fraudsters withdrew over 3 Billion dollars in Cryptocurrencies, especially Ethereum and Bitcoin, and eloped with the fund leaving the message “sorry we have run” to the devastated investors.
Once again, the same platform, Plus token, has been in news headlines for trying to launder around 13000 Bitcoins by directly depositing them into some mixing services in a duration of 24 hours. Though the creators of the PLUS token had been apprehended after the 2019 scam, it seems like the wallet is still active and someone still holds the private keys of the wallet and using it fervently to fraud crypto users. This led to the massive crash in the prices of Bitcoins by $500 within hours.
What influencers are saying about the dropping price of BTC?
Following the lethal virus outbreak in Wuhan, influencers and bloggers are taking into their social media accounts to vent their hearts out and talk about the negative impacts that the virus created on the crypto market. Some even made sarcastic posts which were flooded by likes and comments by millions of followers. One such blogger posted in his Twitter handle asking, “What has made Bitcoin so annoyed and spoilt its mood,” and to this sarcastic post, some replied, “Coronavirus.” Even some wished speedy recovery of the BTC Price.
#Bitcoin not in a good mood?
Who annoyed Bitcoin?
— Nischal (WazirX) ⚡️ (@NischalShetty) March 9, 2020
Some also said that to get rid of their Bitcoin holdings after the scam in 2019 came into the forefront; the participants are still trying to sell off their Bitcoins on and off into various mixing services to hide their traceability. According to the Bitcoin price prediction evaluated by experts, they say that this has led to the fall in Bitcoin prices and not the Coronavirus, though both are true. The PLUS token scams exacerbated the price loss of Bitcoins.
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