Shortly after the Thanksgiving Bitcoin dip to $16,200, news emerged that the Chinese government had seized $4.2 billion in cryptocurrencies as part of the Plustoken Ponzi scheme court case. Rumors swirled that such tokens were about to be dumped on the open market, crashing prices further.
Sino Global CEO Matthew Graham on Twitter wrote that he thought the majority of Plustoken Bitcoin was sold.
In addition, whether or not the tokens were sold, in an interview with Cointelegraph McGrath suggested that traders learn to look past immediate headlines. “In the crypto and blockchain ecosystems it is important to be able to ‘cut through the noise,’” he said. “We are long term bullish on Bitcoin and we continue to see the industry professionalize and mature as an asset class.”
McGrath also weighed in on Chinese cryptocurrency miners, a popular boogeyman for western crypto traders. Many have hypothesized that Chinese miners will make a 51% invasion on the network, and they’ve long been derided by some for controlling vast swaths of the BTC supply. McGrath, however, rejects both notions.
“Some of the reason that “Chinese miners” have been a “boogeyman” to western traders is simply a lack of understanding,” he said. “In theory, of course we know that 51% attacks can occur, but the level of centralization/coordination and incentives simply does not exist among the Chinese miner community for top cryptos.” “As far as dumping of mined coins, etc. It is possible that Chinese miners are impacted by external factors that would cause them to manage mined coins differently. This is to be expected across different geographies,” he added.