Crypto

Crypto Scammers are Forced to Work Harder due to the Coronavirus Crisis

It is evident that the coronavirus crisis is shaking things up on a global basis. Recent findings by Chainalysis further confirm how scammers aren’t paying enough attention to ensure their nefarious projects keep generating revenue.

Many different factors influence the success of a cryptocurrency scam.

Scammers Need to put in More Effort

More often than not, users are drawn in due to the promise of high financial returns.

That is anything but a sustainable model, forcing these scams to fold relatively quickly.

Chainalysis research confirms that scammers aren’t paying attention to what is happening around them.

During the coronavirus crisis, the Bitcoin value has undergone some big changes, albeit not in a positive manner.

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More specifically,  the investment and Ponzi scams are bringing in far less revenue.

In the phishing emails – or through fake investment websites-  scammers still demand the same amounts of Bitcoin as they did when BTC was valued at $10,000 and more.

By maintaining this approach, the scams currently generate at least 30% less revenue.

In theory, that is not a bad thing, but it goes to show that little effort is put into these nefarious investment schemes.

Unfortunately, this does not mean scammers will stop making money in the near future either.

It will be interesting to see how the coronavirus will affect that particular segment in the coming weeks and months.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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