As per the latest figures, cryptocurrency scams have dropped tremendously in the year 2022. The number of scams in the cryptocurrency industry has decreased just as the trading prices of cryptocurrencies have fallen.
In comparison with the rest, it is Bitcoin (BTC) that was the top priority of the scammers. It has been noticed that as the price of Bitcoin has dipped, so have the cases related to crypto scams.
Seventh Month Scam Revenue
According to stats, the scam revenue for cryptocurrencies has dipped tremendously. In the first seven months of 2022, the cryptocurrency scam rate has fallen by 65%, as compared to the same period in 2021.
The data analysis regarding the cryptocurrency scams has been collected by Chainalysis.
The crypto scam rate has fallen at the same rate as the prices of the cryptocurrencies including Bitcoin and major altcoins. As the demise of cryptocurrencies has continued in the year 2022, so has the number of cryptocurrency scams.
Inexperienced Investors Increased the Scam Rate
According to Chainalysis, the reason behind the rise in cryptocurrency scams was directly proportional to the number of inexperienced investors.
With the cryptocurrency boom in 2021, more investors jumped to take the opportunity. They joined the cryptocurrency industry in masses, and among them, were inexperienced investors who were in majority.
This proved to be a great opportunity for the bad actors to run their scams and deprive them of their money. The scammers ran several kinds of schemes, and plots, and even ran fake companies to fulfill their purpose.
Scam Rate Declined Due to Two Reasons
Among the reasons behind the increased scam rate in the cryptocurrency industry was the lack of knowledge of the new investors in cryptocurrencies.
The new investors did not have much knowledge and information about how the cryptocurrencies worked and there were no 100% bonuses or risk-free trades.
Still, the investors were blindly trusting any firm or exchange making false and misleading claims. As the number of investors was extremely high in 2021, therefore, the crypto scam rate was very high.
Now, as the prices of cryptocurrencies have fallen, people are not going for compelling baits. They are going for platforms that are offering firmness and security.
As the people left behind in the crypto-verse are the ones with the most amount of experience and knowledge in cryptocurrencies, it is difficult to make fool out of them.
Crypto Scam Revenue
From the beginning of the year 2022 until now, the crypto scam revenue is worth $1.6 billion. However, in the same period last year, the crypto scam revenue was worth $2.64 billion.
This is a clear indication that the cryptocurrency scam rate is dropping in the running year. It may continue dropping as more people continue gaining experience in the particular space.