Crypto Scams Drop 65% After Gullible Noobs Leave Market: Chainalysis
Less gullible retail investors and falling asset prices have made the scam less attractive, but the tsunami of new DeFi apps does pirates lick their lips.
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Fewer people have fallen victim to cryptocurrency scams so far in 2022 due to falling asset prices and inexperienced crypto users exiting the market, new report reveals on crypto crime.
According to an Aug. 16 report from Chainalysis, total year-to-date crypto scam revenue currently stands at $1.6 billion, which equates to a 65% drop from the previous year. period of the previous year, which seems to be linked to the decline in cryptocurrency prices. .
"Since January 2022, scam revenue has fallen more or less in line with Bitcoin prices. [...] it's not just about the decline in scam revenue - the cumulative number of transfers individuals to scams so far in 2022 is the lowest it has been in the past four years."
Eric Jardine, head of cybercrime research at Chainalysis, and author of the report, explains that crypto investors are more likely to fall for scams during bull markets, when investment opportunities and Outsized returns are most attractive to victims.
Source: ChainalysisJardine also speculated that bull markets generally see a higher prevalence of new, inexperienced crypto users, who are more likely to fall victim to scams.
The researcher said the results are also skewed due to the relatively large PlusToken and Finiko scams in 2021, which brought in $3.5 billion in total revenue.
Conversely, Jardine notes that the biggest scam of 2022 so far only grossed $273 million and is tied to cannabis investment platform JuicyFields.io, which allegedly locked investors in out of their accounts on their cannabis-focused "e-culture" services.
Hacks and Stolen FundsWhile scam revenue fell over the year, Jardine notes that crypto-based hacking reversed the trend, increasing 58.3% through July 2022 to 1.9 billion dollars, ...
Less gullible retail investors and falling asset prices have made the scam less attractive, but the tsunami of new DeFi apps does pirates lick their lips.
New
Fewer people have fallen victim to cryptocurrency scams so far in 2022 due to falling asset prices and inexperienced crypto users exiting the market, new report reveals on crypto crime.
According to an Aug. 16 report from Chainalysis, total year-to-date crypto scam revenue currently stands at $1.6 billion, which equates to a 65% drop from the previous year. period of the previous year, which seems to be linked to the decline in cryptocurrency prices. .
"Since January 2022, scam revenue has fallen more or less in line with Bitcoin prices. [...] it's not just about the decline in scam revenue - the cumulative number of transfers individuals to scams so far in 2022 is the lowest it has been in the past four years."
Eric Jardine, head of cybercrime research at Chainalysis, and author of the report, explains that crypto investors are more likely to fall for scams during bull markets, when investment opportunities and Outsized returns are most attractive to victims.
Source: ChainalysisJardine also speculated that bull markets generally see a higher prevalence of new, inexperienced crypto users, who are more likely to fall victim to scams.
The researcher said the results are also skewed due to the relatively large PlusToken and Finiko scams in 2021, which brought in $3.5 billion in total revenue.
Conversely, Jardine notes that the biggest scam of 2022 so far only grossed $273 million and is tied to cannabis investment platform JuicyFields.io, which allegedly locked investors in out of their accounts on their cannabis-focused "e-culture" services.
Hacks and Stolen FundsWhile scam revenue fell over the year, Jardine notes that crypto-based hacking reversed the trend, increasing 58.3% through July 2022 to 1.9 billion dollars, ...
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