Ethereum’s price may face new downward pressure when hundreds of crypto-wallets that have lain dormant inactive for over three years, suddenly send huge amounts of Ethereum tokens.
Lookonchain tracks the movements of Ethereum (ETH) tokens and reports that hundreds of wallets dormant since 2021 are now active.
These wallets moved large quantities of ETH in 3.3 years. However, they are now under heavy pressure to sell it due to the dumping by Jump Trading.
What’s happening?
Lookonchain reported on August 7 that these wallets, which are linked to a ‘Plus Token Ponzi scheme’ from 2020, hold 789,533 Ethereum. With the price of Ethereum at the moment, this is around $2 billion in tokens.
We noticed hundreds of inactive addresses transferring ETH. We tracked these funds on the blockchain and found they came from a wallet called “Plus Token Ponzi 2”, Lookonchain stated.
Chinese seize ETH
Lookonchain revealed that the on-chain tracking linked funds with the cryptocurrency wallet labeled Plus Token Ponzi 2′. This wallet has moved 789.533 ETH between thousands of wallets since 2020, and is dormant now.
The ETH tokens are linked to the crypto crackdown by Chinese authorities following the Plus Token Ponzi Scheme that allegedly defrauded more than 2 million people.
According to reports, the Ponzi scheme began in 2018 by offering an unexistent trading platform for crypto assets to investors who were unaware.
The Chinese police confiscated 194,775 Bitcoins, 833.083 Ethereum, 1.4 Million LTC, 1.4 Million XRP, 27,6 millions EOS, 79.581 BCH 74.167 DASH 6 billion DOGE and 213,724 US Dollars. At the time, crypto assets amounted to over $4.2 billion.
The price of Bitcoins and other cryptocurrencies is rising rapidly, as the value of ETH alone has risen to over $2 billion. Other assets are also soaring and the potential sale by authorities who seize them could lead to significant pressure.
Bitcoin Cash, Litecoin and Dogecoin have a combined value of over $609 million. Bitcoin Cash is worth more than $11 billion. XRP has surpassed $252 millions.
Selling Jump Trading ETH
Jump Trading is also a topic of concern in the latest news about ETH. Recently, the trading firm transferred millions in ETH worth to exchanges. It also completed a transaction of $29 million worth on Wednesday.
This company is one of many that have contributed to the pressure on cryptocurrencies to sell off this week. Jump Trading, according to Lookonchain still has $63,000,000 in wrapped staked Ether.
At the time this article was written, the price of ETH was $2,485. It has been flat over the last 24 hours, but is down more than 25% from the previous week.
The post Ethereum Price: Dormant Wallets Move Massive Amounts of ETH After 3-Year Hiatus could be updated as new information becomes available.
