Plus Token and investor searching behaviour – A cryptocurrency Ponzi scheme
Shuyu Zhang, Dunli Zhang, Jianming Zheng, Walter Aerts, Dandan Xu
Abstract
Abstract In July 2020, the Chinese government warned that the Plus Token was a Ponzi scheme based on blockchain. More than 200 million investors were involved in this scam. We investigate how investors' search behaviour is associated with their decision making. We find that the bitcoin bag of words Baidu index is positively and significantly related to bitcoins transferred to Plus Token addresses, suggesting that public prominence of searches about bitcoin and blockchain tends to be related to investor decisions regarding the Plus Token project.
Topics & Concepts
CryptocurrencySecurity tokenScheme (mathematics)BlockchainToken economyIndex (typography)Government (linguistics)BusinessComputer securityMonetary economicsComputer scienceEconomicsPsychologyWorld Wide WebMathematicsSocial psychologyPhilosophyLinguisticsMathematical analysisReinforcementBlockchain Technology Applications and SecurityFinancial Markets and Investment StrategiesFinTech, Crowdfunding, Digital Finance