A large transaction associated with the PlusToken Ponzi Scheme had recently worried the traders resulting in ETH’s fresh selling pressure on Dec. 19.
PlusToken earned the villainous title as the largest Ponzi scheme globally after hitting nearly $350 prior to crashing. During that time, its owners collected around $3 billion from investors who are buying the PlusToken coins.
Despite multiple arrests, later events have shown that specific individuals still have access to the wallets of the network. Some analysts cautioned that the implications for Ethereum price can be quite severe.
Suspicions have already been present about the effects of PlusToken on Bitcoin. On November 2019, the research firm Chainalysis indicated that scammers might be using OTC (over-the-counter) to sell bitcoin in large sizes.
ETH and BTC have both plummeted dramatically, but Ether is facing further challenges as slow progress, combined with provocative decisions by Ethereum developers, plays a crucial toll on sentiment.
Furthermore, critics and pessimists came out strongly against a proposal earlier this week to attempt a second hard fork in less than a month on Ethereum. They said such a move could involve nodes of disillusionment that could quickly be jettisoned from the network.