The cryptocurrency market is a big opportunity for dishonest people. The relatively new technology allows the use of many proven theft and fraud methods that have been used in the currency, investment and direct thieving markets. Chainalysis has summarized the cryptocurrency crimes of 2020.
2020 It has been a difficult year. We had to deal with the corona virus pandemic at this time, which made the world come to a standstill. However, it was also an extremely interesting moment in the history of cryptocurrencies. It was in 2020 that the price of Bitcoin soared, establishing its new ATH. Many altcoins like Ethereum and Polkadot have also risen to high levels, but not all. Many altcoin investors are disappointed, but there is a long way to go.
2020 was also a bit safer for crypto users in terms of security, as compared to 2019, the amount of cryptocurrency crimes has decreased. Remember, however, that it has not completely disappeared.
Background Cryptocurrency Crimes Are Down!
According to the Chainalysis report, in 2019, the share of crime in all cryptocurrency transactions was 2.1%, with an estimated value of around $ 21.4 billion. The 2020 summary is optimistic for two reasons. The first, according to the data this year, was much less crime. Last year, the number of crimes fell to just 0.34%, and the second (related to the first) that the value of these transactions was estimated at $ 10 billion. That is more than half in cash alone.
Reducing the number of crimes can be linked to economic activity in the world, but it is not directly confirmed because there are no studies yet developed that would confirm the dependence on the cryptocurrency market. Nevertheless, the number of scams is declining .. This makes it an even smaller part of the crypto industry.
Chainalysis also noted that the number of scams decreased significantly in 2020, which may be related to the massive PlusToken scam that took place in 2019.
