Shortly after a Thanksgiving Bitcoin dip to $16,200, news broke that the Chinese government had seized $4.2 billion in cryptocurrencies as part of the Plustoken Ponzi scheme court proceedings. Rumors swirled that those tokens were poised to be dumped on the open market, crashing prices further.
However, Sino Global CEO Matthew Graham wrote on Twitter that he believed the majority of the Plustoken Bitcoin had been sold:
hmm my interpretation was *mostly* sold but yes, there’s no need for FUD, agree https://t.co/NAq5iSRoXz— Matthew Graham (@mattysino) November 27, 2020
Additionally, whether the tokens have been sold or not, in an interview with Cointelegraph McGrath recommended that traders learn to look beyond 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 a common boogeyman for Western crypto traders — Chinese cryptocurrency miners. Many have speculated that Chinese miners could conduct a 51% attack on the network, and they’ve long been derided by some for controlling vast swaths of the BTC supply:
the cool thing about china having a ton of bitcoins and mining a ton of bitcoins is absolutely nothing— CryptoGainz (@CryptoGainz1) November 27, 2020
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.
When asked about price targets, McGrath declined to make moonshot calls. He did, however, shed some light on Sino’s investment philosophy.
“Pick projects and teams in which you share a vision and have conviction. Invest for the long-term and don’t get caught up in day to day market fluctuations,” he said. “We invest in teams and projects where we share a vision and have conviction. If we can find, support, and incubate these projects – we’ve done our job.”