news hardware Here is the positive effect of Bitcoin and other cryptos falling
For the past few months, Bitcoin has sunk the trend of the crypto market to the downside. In this usual bearish cycle, the context is stressful for some, but it’s not necessarily all bad news.
The rise of Bitcoin has attracted crypto scams
The fall in value of Bitcoin and other cryptocurrencies does not only have negative effects. Over the past two years, the cryptocurrency price explosion has attracted many malicious intents.
These cryptographic virtual currencies, which are becoming increasingly democratized, have seen massive adoption and are attracting new followers who are not necessarily proficient in the security applications associated with the blockchain. Although several novices have managed to navigate between the sharks, some have left their cryptos there by compromising their wallets.
If amateurs have been the target of phishing and other amateur ransomware, some more die-hard crypto enthusiasts have also fallen victim to more sophisticated operational methods, such as: B. Network infrastructure hacks. The recent hack of Solana wallets bears witness to this.
In another register, as the field flared up, several cryptocurrencies and other tokens have also promised their investors mountains and wonders with the aim of extracting funds without carrying out the initial project. Better known as an exit scam, these scams are also thriving in a rising crypto trend.
Therefore, in addition to the vulnerability of certain users and organizations, it is clear that the sector has been a favored target, especially as it very quickly became synonymous with staggering sums.
So the reason seems obvious: fraud goes hand in hand with the bull run (crypto bull market). It is important to emphasize that this logic can be found 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 declining. Good news as cryptos have 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 grip of a sharp slump and not only investors are jumping out.
In fact, the bear market isn’t all bad news, as after this drop even the scammers seem to have lost interest in the sector.
In a study conducted by Chainalysis, we learn that the industry has seen fewer frauds in 2022.
Crypto Scammers Earnings Down
After the speculative bubble burst, the crypto sector saw a significant drop in transactions. Therefore scammers are much less profitable.
According to Chainalysis, the scammers reportedly generated $1.6 billion in revenue, down 65% year over year. By 2021 they had booked no less than $5 billion.
In addition to the decline in illegal transactions and the hardening of several followers, Chainalysis believes that these numbers can also be explained by the general drop in value. In fact, scammers’ profits were higher when Bitcoin was around $60,000. From this perspective, a hacker now has to extort 3 to get the same ransom.
This consolation prize allows investors at least some peace of mind during this bear market. The data also shows the tendency of market participants to be increasingly wary of malicious attempts of any kind. The backdrop to the bear market isn’t just clouded by bad news – this bearish trend is also cleaning up and tweaking technology to become more reassuring for future users.