Alleged Chinese Ponzi Scheme PlusToken has Collapsed

Cryptocurrency scams and pyramid schemes will always be present. One Chinese project, called PlusToken, is currently generating a lot of attention. It seems this project raised roughly $2bn worth of Bitcoin and has now begun liquidating it. While the evidence is still circumstantial, it would explain the current bearish market trend. 

The PlusToken “Ponzi Scheme”

It is still a bit early to definitely claim PlusToken is a Ponzi or pyramid scheme. Although the promises made to users are dubious at best, that can always be easily explained. The company aims to bring cryptocurrency to the masses by offering an investment option which is not necessarily all that legitimate. As has been the case with most assets or tokens issued in recent years, very few statistics seem to add up. This is part of what attracts so many cryptocurrency investors, and also causes significant losses over time.

Although the PlusToken website is seemingly offline, a cached version can be found through The website claims how this new token will revolutionize the financial world. It even had a road map of what would come in the future, including the launch of the main network, among other things. It is a bit unclear why so many people would invest in this hype, as there is nothing that really sets it apart from other scams. 

200,000 Bitcoin to be Liquidated?

Some sources seem to claim the PlusToken team is liquidating all of the collected BTC in quick succession. It would appear the team has collected roughly 200,000 Bitcoin from

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Chinese investors. That in itself is interesting, as China doesn’t like Bitcoin activity in the slightest. Despite this scrutiny, the cryptocurrency industry continues to thrive in this part of Asia, even in 2019. 

If all of these funds are to be liquidated, the Bitcoin price could drop a fair bit lower over the next few days. It seems the company also collected hundreds of thousands of Ether from investors, which would incur even further financial losses moving forward. It is uncanny how potentially malicious companies can collect so much money from investors without even providing a working product on day one. Time and time again, people keep falling for these cheap tricks. 

Exchanges Aren’t Doing Anything

While outlandish claims like these will always need to be investigated, it appears the hundreds of exchanges worldwide aren’t doing anything to stop a potential market dump. They are not obligated to do so, although they could easily monitor some of the PlusToken addresses shared on social media. Chainalysis and Peckshield are already analyzing transactions to and from this address to ensure there is a log of transactions if push comes to shove. 

When incidents like these occur, it is pertinent to not draw any conclusions without evidence. While PlusToken’s offering was a Ponzi Scheme waiting to collapse, that doesn’t mean the company is dumping its BTC holdings. It is a very likely and plausible scenario, but until evidence surfaces, there is nothing to prove. China will undoubtedly crack down further on cryptocurrencies following this incident. That in itself could trigger another wave of bearish Bitcoin price momentum. 

Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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