The crypto market meltdown has taken its toll on fraudsters. According to data from TradingPlatforms, crypto scam revenues have dropped by 65% in one year. At the end of July 2021, the figure was 4.5B compared to 1.6B during the same period in July 2022.
Speaking on the data, TradingPlatforms‘ Edith Reads said.
„The data collected by our platform reflects the current state of the crypto industry. The market is young and ever-changing, so new scams are constantly popping up while old ones die out. As the market has matured, we’ve seen a decrease in overall scam activity. However, this doesn’t mean that investors should let their guard down. There are still plenty of scams, and it’s important to be vigilant.“
Investors are Alert to Fraud
Crypto markets have been volatile this year, with significant price decreases across the board in May and June. The price of a single Bitcoin has recently been between $20,000 and $24,000. When Bitcoin was at its peak price, scam artists raked in around $5 million daily.
PlusToken and Finiko are among the significant outliers that drive the revenue scam. PlusToken scammed more than $2 billion in 2019, while Finiko milked more than $1.5 billion in 2021. However, there are no such significant frauds so far in 2022.
Crypto markets have shown steadiness in the last few weeks. This might be a pointer that the market might begin rising sooner. As the market starts to heat up, more hacking incidents are expected to be reported. These could lead to an increase in fraud as investors become easy targets. The full story and statistics can be found here: Crypto Fraud Revenues Drop 65% After the Market Meltdown