A year’s worth of data indicates a decline of 65% in crypto-scam revenues


Even though many individuals in the bitcoin business are concerned about rumours of probable scams, a new survey reveals that the number of frauds has been dropping over the last year.

According to a survey released on August 16 by Chainalysis, the total income from scams in 2022 is now predicted to be $1.6 billion, a 65% decline from what it was at the end of July 2021.

Moreover, the blockchain data platform observes that this decline seems to be associated with falling prices across a number of cryptocurrencies.

Since January 2022, the revenue from scams has declined in a way generally proportional to Bitcoin’s price.

Not only is the amount of money earned by scams reducing, but the overall number of transactions made to fraudsters so far in 2022 is at its lowest level in the past four years.

Based on these numbers, a historically small number of persons fall for bitcoin frauds. As asset prices continue to decrease, potential victims may find cryptocurrency scams, which often present themselves as prospects for passive crypto investments with high promised returns, less tempting.

Fewer less-seasoned crypto users

Chainalysis indicates that fewer new, inexperienced users may be on the market now that prices are down compared to when prices were soaring. They were driven to the market by excitement and rapid gains, making them more susceptible to fraud.

Given that one or two big scams typically drive the total income created by scammers in a given year, an outlier may arise or be detected before the end of the year, reversing the present trend of diminishing revenue generated by scams in the crypto sector.

Also Read: A crypto trading expert sees Bitcoin’s position as one to monitor ‘for longs’ if consolidation happens

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