According to data from TradingPlatforms.com, crypto scam revenues have dropped by 65% to $1.6 billion. Compared to the end of July in 2021, the figure was $4.5 billion.
Speaking on the data, TradingPlatforms' Edith Reads said, "The Crypto meltdown saw many people avoid investment. So, it is no surprise to see fraudsters' profits take such a substantial hit."
"The data does show that there are still people looking to take advantage of investors during bear markets. So, it is important to be vigilant and not let the fear of missing out override your common sense," Reads continued.
Why Crypto Frauds Are Low
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 (R339,550) and $24,000 (R407,856).
When Bitcoin was at its peak price, scam artists raked in around $5 million daily. However, since the market crash began scamming activity declined, with fewer people new to crypto investing.
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.
Hacking Is the Threat
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.
BUSINESS REPORT