- The Chinese government holds more BTC than MicroStrategy.
- If China sells its holdings, the price of BTC and the entire market will be affected.
- It is believed that the selloff during the Ponzi scheme caused the market and BTC to suffer.
After seizing 194,775 BTC during the infamous PlusToken scam, the Chinese government owns more Bitcoin than MicroStrategy.
About $3.9 billion is the total market value of the BTC held by the Chinese Government, which is 1% of the total Bitcoin holdings.
In a Twitter thread on Wednesday, Ki Young Ju, the CEO of CryptoQuant, revealed a little-known fact that the Chinese government possesses more Bitcoin than Michael Saylor’s MicroStrategy which is one of the world’s largest Bitcoin whales.
In such a scenario, the market is concerned that China might dump a significant amount of bitcoin, which would impact the entire market and the price of BTC. However, this is still under speculation.
Meanwhile, MicroStrategy has about $2.5 billion in total assets under management (AUM) or 130K BTC.
The Chinese government’s apparent preference for Bitcoin may be due to its decentralized nature. As a result, it is not subject to the same restrictions as other financial institutions.
This news comes on the heels of China’s crypto ban, which is expected to harm the Bitcoin market. The ban is anticipated to discourage investors from investing in digital assets.
In 2018, PlusToken announced that subscribers of its crypto wallet would receive monthly payments as part of its Ponzi scheme. China and South Korea were home to the majority of its users.
Multiple people detained in several nations were in charge of the Ponzi scheme. 27 out of the lot received an 11-year prison term.
It was thought that the market and bitcoin suffered due to the selloff that occurred during the Ponzi scheme. Fears in the market were increased by the regular large-scale transfers of tokens like ether made by accounts connected to the scam.
Notably, to retain oversight and monetary management, the government has favoured a Central Bank Digital Currency (CBDC) over cryptocurrencies.
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