News hardware Here is the positive effect of the fall of Bitcoin and other cryptos
Over the past few months, Bitcoin has seen the crypto market trend down. In this usual bearish cycle, the context is difficult for some, but it doesn’t necessarily bring all bad news.
Bitcoin’s Rise Has Attracted Crypto Scams
The depreciation of Bitcoin and other cryptocurrencies has not only had adverse effects. Over the past two years, the explosion in the price of cryptocurrencies has attracted a lot of malicious intent.
These cryptographic virtual currencies are increasingly democratized and have been the subject of mass adoption, attracting new followers who do not necessarily master the security applications associated with the blockchain. So, while several beginners have managed to navigate among the sharks, some have left their cryptos there by compromising their wallets.
If amateurs have been targeted by phishing and other amateur ransomware, some more confirmed followers in the crypto sector have also fallen victim to more elaborate methods of operation, such as network infrastructure hacks. The recent hack of Solana wallets testifies to this.
In another register, with the field buzzing, several cryptocurrencies and other tokens have also promised mountains and wonders to their investors with the aim of making money without executing the initial project. Known as Exit Scam, this scam also thrives in a rising crypto trend.
Therefore, in addition to the vulnerability of certain users and organizations, it is clear that the sector was a favorite target, especially as it quickly became synonymous with staggering amounts of money.
So the reason seems obvious: Scams go hand in hand with the bull run (crypto bull market). It is important to specify that this logic occurs in almost every growth sector.
The bear market (crypto bear market) plays against the scammers
In recent months, the trend of scams in the cryptocurrency sector seems to be waning. Good news, as cryptos had become a prime target for web3 scammers.
As the crypto market has entered its bear market, scams are less attractive to hackers. Since the beginning of the year, the prices of all cryptos have been in the throes of a sharp drop and investors are not the only ones jumping.
Indeed, the bear market is not only bringing bad news since this drop, even the scammers no longer seem interested in the sector.
A study by Chainalysis shows that the sector has suffered less from scams in 2022.
Crypto Scammers Revenue Down
After the speculative bubble burst, the crypto sector registered a significant drop in the number of transactions. Scammers are thus much less profitable.
According to Chainalysis, the scammers reportedly made $1.6 billion in revenue, down 65% from the previous year. By 2021, they had registered no less than $5 billion.
In addition to the decline in illegal transactions and the hardening of multiple followers, Chainalysis believes these numbers can also be explained by the overall decline in value. Indeed, the scammers’ profits were higher when Bitcoin was around $60,000. In this perspective, to get the same ransom, a hacker now has to extort 3.
At least this consolation price reassures investors during this bear market. The data also shows the tendency of market players to become increasingly suspicious of malicious attempts of any kind. The backdrop of the bear market is not only marred by bad news – this bearish trend is also cleaning up and optimizing the technology to become more reassuring for future users.