Crypto scams fall 65% after gullible noobs exit the market: According to Chainalysis

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In the world of cryptocurrency, it seems that scams are becoming less and less common. A new report shows that in 2022, there will be fewer victims of crypto scams due to several factors, including the falling prices of assets and the fact that many inexperienced users have left the market. While this is good news for those involved in the crypto world, it is essential to remember that there are still plenty of people out there looking to take advantage of others.

Scammers have taken in about $1.6 billion from unsuspecting crypto investors this year, a significant decrease from last year. The report from Chainalysis suggests that the lower scam numbers could be due to the general decline in cryptocurrency prices.

The Reason Behind These Hacks and Stealing Crypto Scams

When the market is doing well and people are seeing high returns on their investments, scammers are most likely to strike, according to a new report from Chainalysis. The report’s author, Eric Jardine, explained that people get greedy during bull markets and are more willing to take risks. However, he also said that there are usually new investors who don’t know much about the market and are more likely to be scammed during these times.

Jardine warns that even though scam revenue decreased last year, crypto-based hacking has increased by 58.3%. This means that hackers have stolen 1.9 billion dollars through July of 2022, and this number does not even include the $190 million Nomad bridge hack from August 1.

According to Jardine, the significant uptick in hacking can be largely chalked up to the rise of DeFi apps in 2021. DeFi protocols are more vulnerable to hacking than most because their code is open source and can be examined closely by anyone with malicious intent. However, Jardine went on to say that there is a silver lining – these types of exploits can help point out code weaknesses so that they can be fixed.

Dark Webs: The Central Focus for Hackers to Perform Illegal Transactions

Jardine commented that darknet market sales have decreased by 43% in 2022. The main reason for this decrease is due to German law enforcement shutting down the Russian darknet marketplace Hydra servers on April 5. 

Darknet markets are online black markets that sell illegal goods and services. These markets are often hosted on the dark web and use cryptocurrencies as payment.