Chainalysis a research company on crypto assets said that PlusToken did not cause the “Black Thursday” sell-off of March 12. They bring clarity that impact of COVID-19 on cryptocurrency market is exchange of inflow and outflow.Philip Gradwell, chief economist at Chainalysis said : “We can also dispel another theory that has been going around, that PlusToken […] selling triggered the price decline.We actually don’t think that’s the case because PlusToken had largely cashed out before early March.
”Chainalysis data shown with proof that Plustoken decreased before crash which clearly proved that funds already cashed out.12,423 Bitcoin, worth $123 million was moved from cool wallet. PlusToken still hold 61,229 Bitcoin, currently worth around $420 million, but due to crash and low price investor not ready to sale their PlusToken and waiting for price upward. The situation of holding PlusToken is one of reason Bitcoin price is low.
Although larger number of PlusToken has been convert into USDTT or Bticoin but still its impact on Bitcoin price remain on table.She said: “We found in the past that large inflows to exchanges, such as those from PlusToken last year, tend to increase the price volatility on exchanges.
This problem can potentially be exacerbated by trading bots that pick up on those on-chain movements and execute trades, not to mention the highly leveraged positions on derivatives exchanges that can get liquidated rather quickly. But overall, prices tend to bounce back quickly from those one-off events.”