- Illicit transaction volumes are down around 15% in the year through to July.
- Total scam revenue is $1.6 billion so far in the year, 65% less than July 2021.
The global crypto market witnessed a tremendous collapse so far this year. The market shrunk below $1 trillion, because of numerous reasons such as the Luna-Terra crash, market equity, inflation, and transactions freezing from Celsius Network. Currently, the crypto industry and digital assets are gradually rising from the market winter.
The market-dominant Bitcoin fell below $20,000, after reaching its all-time high price in November. Major altcoins also faced a severe downturn, amid the market conditions. At the same time, criminal activities also reduced in the market, when compared to the previous year.
Scam Activities in Crypto: 2021 & 2022
Bitcoin and other major altcoins surged up and reached their high price in the previous year. At that time, crime activities also increased in the crypto market. But in 2022, the market faced a sudden downfall and top coins crashed down. When the price drops, scam activities are also reduced. As per the recent reports, illicit transaction volumes are down just 15% year over year compared to 36% for legitimate volumes.
So far this year, the total revenue from scams is $1.6 billion, which is 65% less than it was until the end of July 2021. This reduction appears to be a result of falling exchange rates for various currencies. Revenue from scams has roughly decreased following the Bitcoin price in January.
The scamming activities in the crypto scenario are reduced but it doesn’t mean that they will continue to decrease day by day. Even now, several inexperienced people are being victims of such cryptocurrency fraud activities. When the crypto prices decline, the scammers pose as passive crypto investment opportunities with substantial promised returns to the investors.
Additionally, when the price increases, the scammers create hype and promise their users quick profit earning. The new investors in the crypto industry are more likely to fall for these fraud activities.
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