the good news (surprise) from the bear market

The fall of cryptocurrencies could have dramatic consequences for investors, but when it comes to cybercriminals, it could bring good news.

Turnover cyber criminals drop by 65%

The price decline of cryptocurrencies has positive sides. Since the value of Bitcoin, Ether and many other altcoins has fallen dramatically, scammers cannot prey on so many people. Scammers’ revenues have been declining since the beginning of this year.

According to a report by Chainalysis, one of the companies specializing in blockchain analysis, the amount of money criminals made from cryptocurrency scams in 2022 is lower than in 2018. In fact, between January and July 2022, scammers made $1.6 billion. , down 65% from the same period in 2021.

The cryptocurrency market has been shrinking since late last year. The value of all cryptocurrencies has fallen, King Bitcoin has fallen below $25,000 (a far cry from its peak of $69,000 in November 2021). However, the decline was comparable to that of the stock market.

Cryptocurrency prices have been falling since the beginning of the year and more and more businesses have closed since then. This surprisingly rapid decline caused many potential customers to stop using cryptocurrencies, even some criminals who used them.

According to Chainalysis, the volume of criminal activity using cryptocurrencies has decreased significantly since 2019. For both legal and illegal transactions, crypto usage has fallen lower than in the past.

However, criminal activities are less affected by price drops than legitimate activities. Since the beginning of 2019, the volume of transactions related to criminal activities has decreased by 15%, while 36% of regular transactions show a decrease.

Some of the biggest scams that people have fallen for lately are fake investments. However, it seems that people don’t fall for these scams as often as they used to. The number of fraudulent transactions has decreased, indicating that less scams are happening, or at least, more importantly, people are not losing as much money to scams as they used to.

Cryptos less attractive with falling prices

The decline in crypto prices in recent months has led to a decrease in scams. In July, researchers at SonicWall published a study explaining that as bitcoin’s value declined, so did the number of ransomware attacks.

The number of legal transactions taking place is declining, which is not a good sign for the industry as a whole. However, Chainalysis focuses on the positive side: with the decrease in the volume of legal trade, the illegal activity has also decreased.

The number of people trapped by cybercriminals has decreased significantly. The number of people sending money to fraudulent addresses has fallen to its lowest level in four years.

Rising prices attract new crypto users, said Eric Jardine, head of cybercrime research at Chainalysis. As the number of new users entering the market decreases, criminals have fewer potential victims, according to Jardine. Similarly, the Statista survey shows that crypto asset adoption has increased significantly in 2021.

When the market has low prices, people who want to get rich, neophytes are less attracted to the sector. Scammers who promise huge returns from passive investments usually have a hard time claiming victims because there are fewer people looking for easy riches in a bear market. Bad press about the Luna crash or the failure of the Celsius platform may also have driven out new entrants.

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