According to new Chainalysis statistics, total cryptocurrency scam revenue for 2022 is currently $1.6 billion, which is 65% lower than where it was at the end of July 2021. According to Chainalysis, the cause of the reduction appears to be falling currency values.
It’s no secret that the cryptocurrency market has had a hard few months, with values falling precipitously since the beginning of the year. We have seen historic levels of decreases this year alone, as numerous sectors, such as the Decentralized Finance and Non-Fungible Token (NFT) sectors, have seen record levels of reduced participation as investors transfer to less risky assets in order to protect their money.
The report’s author, Chainalysis’ cyber crimes research head Eric Jardine, argues that crypto investors are more likely to fall for scams during bull markets since the investment options and outsized profits are most appealing to victims. He also believed that bull markets are more likely to attract new, inexperienced crypto users, who are more vulnerable to scams.