As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed numerous events that could shake even the most resilient investors to their core. The recent movement of hundreds of dormant Ethereum wallets, initially seized by Chinese authorities last year, is one such event that has piqued my interest and concern.
In recent times, wallets containing Ethereum (ETH) that had lain dormant for more than three years have sprung back to life, transferring substantial amounts of ETH. This Ether hoard was confiscated by Chinese authorities in 2021. The increased activity hints at a potential massive sell-off of ETH and other cryptocurrencies coming up soon.
China Shifts $2 Billion In Ethereum
According to blockchain analysis firm Lookonchain, these digital wallets have moved around 789,533 Ether (roughly equivalent to $2 billion). Tracing on the blockchain shows that the money came from a wallet linked to the infamous Plus Token Ponzi scheme, which is now being referred to as “Plus Token Ponzi 2.”
As a researcher examining blockchain transactions, I’ve noticed an intriguing development. In 2020, this wallet dispersed a substantial amount of Ethereum (ETH) to various addresses. Since April 2021, it had remained inactive. However, four hours ago, I observed renewed activity: the wallet initiated ETH transfers.
At present, as no official confirmation has been received, it’s widely assumed that the Chinese government may have taken steps regarding the cryptocurrencies they seized, following their actions against the Plus Token scam. The Plus Token scheme was one of the biggest crypto Ponzi schemes ever, resulting in Chinese authorities confiscating a vast quantity of digital assets during their investigations.
ETH Loses Hold On $2,500
194,775 Bitcoins (worth approximately $11.2 billion) and 833,083 Ethereums ($2.11 billion) were taken by the authorities as part of their seizure. Besides these large quantities of Bitcoin and Ether, substantial amounts of various other cryptocurrencies were also seized. Here is a comprehensive breakdown:
- XRP: 487 million XRP ($252 million)
Bitcoin Cash (BCH): 79,581 BCH ($25.8 million)
Litecoin (LTC): 1.4 million LTC ($82.3 million)
EOS: 27.6 million EOS ($12.7 million)
DASH: 74,167 DASH ($1.7 million)
Dogecoin (DOGE): 6 billion DOGE ($609 million)
Tether (USDT): 213,724 USDT
At this point, with the crypto market showing heightened volatility due to geopolitical conflicts and economic downturn worries, the redistribution of these funds is happening. Big transactions could affect market prices, leading to substantial price swings. Therefore, the world of cryptocurrency is keeping a close eye on the Chinese authorities as they manage these assets.
The future actions by Chinese authorities concerning the confiscated assets, which include Bitcoin and XRP, are yet unclear. As of now, Ethereum has failed to maintain its position above the $2,500 mark. On August 7, 2019, the price of Ethereum dropped to $2,480 following this trend. Additionally, the selloff of $30 million worth of Ethereum by Jump Trading has further intensified the downward pressure.
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2024-08-07 15:57