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The Ethereum market is once again facing pressure from China. This week, 7,000 ETH (approximately $16.7 million) seized by Chinese police from the PlusToken Ponzi scheme has been moved to various exchanges.
Ongoing Risk of Ethereum Sales from China
In 2018 and 2019, over 2.6 million victims were defrauded by the PlusToken Ponzi scheme, leading to the seizure of more than $14 billion in various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, and Litecoin (LTC). As ETH from this scheme continues to move, analysts are speculating on whether China will sell all or part of these seized assets.
According to an OXT Research analyst, 7,000 ETH from PlusToken was transferred to major exchanges like Binance and OKX. The analyst also predicts that the remaining 1.29 billion dollars worth of ETH seized from PlusToken could be sold off completely.
“In early August, Ethereum seized from the PlusToken scheme—worth billions—moved on-chain for the first time since 2021. In the past 24 hours, approximately 7,000 ETH (valued at $16.7 million) from a total of 542,000 ETH (worth $1.3 billion) has been transferred to exchanges.”
The analyst suggests that this move indicates China’s intent to sell the remaining ETH, which could result in a sudden influx of Ethereum supply into the market. Such a sale could increase selling pressure and push ETH prices downward.
As reported by Turkish NY Radio, the possibility of China selling its remaining ETH could lead to an oversupply in the market, creating unexpected downward price pressure.
