China’s Government Becomes A Crypto Whale Larger Than MicroStrategy

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Last Updated on 7 November 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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The US government has always feared the moment when China would become so powerful that it could crash the price of an asset simply by dumping it on the open market, leaving capitalism in turmoil. Because of a centralized government which controls most market assets, Beijing could deal with such a disruption far quicker than the US, at least in theory. Funnily enough, Bitcoins seems to be the first such good.

Thanks to the uncovering of a Ponzi scheme in China, the government of Xi Jinping, who have forbidden Bitcoin within their own borders, now have more Bticoin than even Microstrategy.

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Plustoken

Thanks to the uncovering of a crypto ponzi scheme (known as the Plustoken scam), authorities in China have recouped 5.7 billion dollars worth of crypto, making China a bitcoin whale.

It even holds more bitcoins than MicroStrategy and its 130,000 BTC, after Chinese authorities seized the 194,775 BTC linked to the PlusToken scam.

Although the country banned cryptocurrency last year, on paper the Chinese government owns more than 1% of all bitcoins in circulation.

Chinese authorities remain discreet about the real state of their assets. They did not provide any official information that would show how much bitcoin has been sold, added to stock over time, and the actual BTC balance today.

Given the large amount of bitcoins in its possession, China could exert strong downward pressure on the price of the cryptocurrency, should it part ways with it.