This Explains Why Bitcoin is Dumping Recently!!!
Today, I’m very glad to share with you four very interesting news pieces. For the first piece, it looks like the recent downturn of Bitcoin and other tokens could be the result of a $3 billion dollars Chinese Ponzi Scheme. For the second news of the day, it looks like Ripple may be feeling the US regulators wrath, especially since another lawsuit against the company has emerged. Thirdly, due to the poor transaction frequency, Crypto Exchange Poloniex will be removing 23 trading pairs on their platform. And finally, the last piece of news for the day. It looks like Ripple is giving away 1 billion XRP to coil to fuel a community of creators, consumers, and strategic partners.
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The Market Today
Now, let’s have a look at the crypto market map. It’s very clear that we have a mixture of greens and reds here. The king of crypto, Bitcoin, is recovering from yesterday’s bearish fall, with a 1.67% increase. Ethereum and XRP, on the other hand, are following in the opposite direction with 1.68% and 5.15% losses.
Chinese Ponzi Scheme of $3 billion is to blame on Bitcoin downturn
Now, let’s jump to our first news segment. According to a report on Cointelegraph, it looks like a Chinese Ponzi Scheme worth around $3 billion dollars may be responsible for the plummeting prices seen in Bitcoin and other digital tokens. On Aug 14, Dovey Wan, the co-founder of blockchain-based investment company Primitive Ventures, called everyone’s attention to the ongoing massive sell-offs from the fraudulent Chinese investment scheme, known as the PlusToken. The Plus Token emerged in mid-2018 and promised customers they would receive high yield investment returns – a classic Ponzi scheme if you ask me. Following the sell-off, Wan attached data on all the wall addresses, including Bitcoin (BTC), Ether (ETH) and EOS that were associated with the PlusToken. She also told exchanges and over the counter platforms to blacklist them. Wan then added that the Chinese police found a core team member related to the scheme just two months ago, who revealed that the Ponzi Scheme scammed people $3 billion dollars. It looks like, despite the arrest, the cryptocurrency cannot be rolled back. Wan stated that
“Many of their BTC addresses are started with P2SH which commonly used for multi-sig, most likely some ppl who hold the keys are not being caught hence police can’t unlock the wallet. For EOS/ETH wallet can be diff case but so far police was not able to touch any of those.”
This is a pretty significant Ponzi scheme, especially since it was recently identified as the largest single incident of loss in as seen in a recent summary of 2019 crypto-related theft by Cipher Trace, a blockchain security firm.
The SEC is going to beat Ripple
Moving on to the second news item for today. According to a report on Cointelegraph, it looks like the SEC will be bringing ‘Thor’s Hammer’ against Ripple. Now that sounds like a pretty serious situation. While Ripple has made some progress, it is now coming under a lot of fire, especially since Bradley Sostack, is taking the company to court, claiming that Ripple is engaged in selling unregistered securities. It looks like the SEC’s latest pronouncements are in favor of Sostack’s argument, and Ripple now must respond to the accusations next month. Not too surprised considering Ripple has always been in constant controversy over the last few years.
Poloniex has removed 23 trading pairs
And here we come to the third piece of news. San Francisco-based cryptocurrency exchange Poloniex is reported to be removing 23 trading pairs on their platform due to the poor trading volume. In their tweet:
“We will be removing 23 trading pairs on August 16, 2019, due to low volume. Note that each asset will continue to be independently tradable.”
In another post, they provided the specific list on the pairs, including BNT/ETH, LOOM/USDT, LTC/XMR,… Earlier this year, the company announced that they will stop offering some token\ exchanges for the customers in the US. The reason behind this decision was said to be the uncertain regulatory environment in the country. On the other hand, Coinbase Pro conversely tweeted on Aug. 5 that it will soon support XTZ/USD and XTZ/BTC trading pairs. Would definitely keep your eye out on which major exchanges are moving forward, and which ones are reeling back.
1 billion XRP is for online content investment
Moving to the last news item for today guys. In another thread about Ripple, according to Coindesk, it looks like Ripple’s investment arm Xpring, recently participated in the $4 million seed round for Coil, an in-browser payment processing startup is spearheaded by Stefan Thomas, Ripple’s former CTO. Xpring also announced that it gave 1 billion XRP gran (worth approximately $265 million at today’s prices) to Coil to help build the community of creators, consumers and strategic partners. In regard to the news, Ripple CTO Stefan Thomas said:
“Our dream is that you get one subscription and can browse the whole web and support the creators you enjoy without ads or paywalls.”
And that’s it. That’s all the interesting, intriguing, and shocking news for the week.
Do you have any thoughts to share with me?
First up, what are your thoughts on that $3 billion dollars Chinese Ponzi Scheme?
What about the SEC and Ripple?
Are you being affected by Polionex and their removal of trading pairs?
And are you excited for startup Coil to grow?
Please add a comment right below to let me know what you guys are thinking.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing.