Crypto scams fall by 65% as victims exit the market

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The crypto space is flashy but not a bed of roses.

As new people are joining the space they mostly encounter scammers and often times they are duped.

This space is not an easy one for newbies as it makes them vulnerable to scams.

Even people who have crypto knowledge are still scammed as scammers continue to top their game.

Currently, only few people have been scammed in 2022 according to reports.

This can be as a result of the bearish condition of the crypto market and as inexperienced traders are leaving the crypto market gradually.

Also read:How to avoid crypto scams.

Reports from Chainalysis revealed that the total crypto scam revenue is about $1.6 billion, a 65% reduction from previous year.

This fall shows that people have been scammed the lowest in 2022.

Since January 2022, scam revenue has fallen more or less in line with Bitcoin pricing.  It’s not just scam revenue falling — the cumulative number of individual transfers to scams so far in 2022 is the lowest it’s been in the past four years. –Eric Jardine reported.

Eric Jardine, Lead cybercrime research lead for Chainalysis, revealed that crypto investors are susceptible to being scammed during bull markets because the turn out of investment are always enticing.

Scam monthly value chart- Chainanalysis
Scam monthly value chart- Chainalysis

He also said that during bull markets, newbies or inexperienced traders are likely to join the crypto space, and they are more likely to be scammed.

Eric explained that the twisted nature of the said reports is due to the comparatively large PlusToken and Finiko scams in 2021, which bagged $3.5 billion in total scam revenue.

In the reverse, the largest scam of 2022 so far has only netted $273 million, a cannabis investing platform scam, is alleged to have knocked investors out of their e-commerce based platform.

Meanwhile, as crypto scams have reduced gradually this year, crypto-based hack is on a high trend as it has clinch an increase of 58.3% through July 2022 to $1.9 billion, without including the $190 million Nomad bridge hack that started on Aug. 1.

Also read: Why am I being scammed?.

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