Research shows that profits made through crypto scams have dropped steadily since January. On a seven day moving average the money made by crypto scammers dropped from $800,000 worth of crypto to below $300,000 at the start of this month. This huge collapse has been attributed to the market drop earlier this year.
Analysts expected that the pandemic would make people less susceptible to scams but they were wrong. Scammers were still on the prowl and they actually got huge paydays at the start of April. Scammers didn’t lose the ability to scam people during this pandemic period. The drop in revenue was attributed to loss of value in the market amid the huge market selloff. The industries market cap fell by a 100 billion in mid-march, which hit scammer’s pockets quite hard. Researchers believe that scammers are still making steady income from the exact number of people they were leeching off of. What has changed for scammers is the amounts they are raking in because of the loss of value.
According to a chainalysis report;
“We believe scammers are still receiving those same payments from roughly the same number of victims per month. The payments are just worth less now due to cryptocurrency price drops,”
“In short, while COVID-19 is providing phishing and blackmail scammers with new fraudulent stories to entice victims, the cryptocurrency price drops spurred by the pandemic have drastically reduced the revenue of the Ponzi schemes and investment scams that make up most cryptocurrency scamming activity.”
The drop in what scammers are getting away with is likely to be short lived. Their revenues are likely to go back up unfortunately because the crypto markets are rebounding. As the market continues to regain value, scammers are likely to start having bigger pay days again