Chainalysis recently reported that in 2022 crypto scam revenue plummeted by 46%. Do you note the term ‘revenue’ here? It is significant because a decline in crypto scam revenue doesn’t mean a decrease in total scams. Chainalysis reports that this decrease is due to a fall in the total market cap of crypto which decreased their prices.
Let’s say the average price of Ethereum in 2021 was $3,000, and 10 ETH was scammed by users; the revenue is $30,000. In 2022, it’s possible that 12 ETH was scammed, but let’s say the average price is $1,500, and the total revenue is $18,000, which is a 40% decline.
Crypto scam revenue in 2022
In the 2023 Crypto Crime Report published by Chainalysis, they reported that the revenue of scams dropped by nearly 50% in 2022. In 2021, the revenue stood at $10.9 billion; in 2022, the same was at $5.9 billion. This might not be an accurate number, but it gives us a close picture of reality. The report states that Chainalysis took several scams into account, such as giveaway scams, investment scams, impersonation scams, NFT scams and more.
The firm also reported that this number would continue to increase as they identify more crypto addresses associated with scams. At the same time, it will increase as the price of crypto increases. Chainalysis also talked about a special type of scam called Pig Butchering, which the FBI even mentioned a while back. The authorities have also seized many websites that were associated with the same.
The reality
Crypto scams continue to increase, but the good part is that their fraction of the total crypto transaction volume continues to decline. This shows that the markets are evolving faster than scammers, and sooner or later, we will be able to eradicate crypto scams mostly. Most of the popular scams in the market take advantage of the victim’s negligence and lack of knowledge. If proper information about cryptocurrencies can be imparted to everyone, we may not have to worry that much. The government has to take a step forward and help boost crypto knowledge among the masses.
What are your thoughts as Chainalysis reports that crypto scam revenue plummeted in 2022? And do you think we will be able to beat scammers with more awareness? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
Also Read: US Catholic Churches are accepting crypto donations.
