2021 crypto-related crimes hit $14B-Why is crypto knowledge essential?
2021 was indeed an amazing year for cryptocurrency. Naturally, the space attracted many investors, but it also opened doors for scammers to steal the investment of others. This led to the crypto-related crimes shooting up to $14B. Hence, sufficient crypto knowledge is important especially if you are a crypto investor or are planning to be one.
PrivacySwap always prioritizes security and safety, and we don’t want you to experience losing all your investment in a mere scam. That is why we always share this type of content to warn you about possible scams and frauds and how you can avoid one. In this article, we will discover how the 2021 crypto-related crimes hit $14B and how important it is to be crypto-aware before investing.
Crypto crimes boomed last year but lowered in volume?
Annual crypto crime updates were released by Chainalysis analytic last week, and a new record high of $14 billion worth of crypto crimes was established. To put this in perspective, this is an increase of 79% from the $7.8 billion figure from 2020.
A mere 0.15 % of the $15.8 trillion in crypto transaction volumes transacted last year was accounted for by this activity.
The boom of cryptocurrency became one of the apparent reasons the numbers went up. As cryptocurrency became more and more recognized last year, it was evident that crypto scammers would take the opportunity to also scam people.
“It’s no wonder that fraudsters are increasingly turning to cryptocurrency in light of its rapid uptake. The biggest shock, though, may be the increase of 79 percent, which is less than half of the total adoption rate,” Chanalysis said.
In addition, Chainalysis data reported that rug pull became the most prominent type of scam. To define, rug pull happens when the developer completely abandons the platform pulling away all the investments. Thus, taking away investors’ funds.
Rug pull became the most common scam in the DeFi space considering the hype on the blockchain last year. It was reported that DeFi transaction volume rose to a whopping 912% last year. In addition, the publicity on the DeFi token Shiba Inu attracted many people to the DeFi space.
Moreover, the website believes that at least $10 billion worth of cryptocurrency is under an illicit address. In addition, the vast bulk of this owned by wallets is linked to cryptocurrency theft.
With this, it is crucial to ensure that every platform you will be investing in is legit. However, not everyone knows how to properly evaluate which platforms are legit and which ones are not. That is why crypto knowledge is essential.
The essence of Crypto awareness
Up until today, security and privacy remain PrivacySwap’s utmost priority. We believe that most cryptocurrency platforms are already safe as they run under blockchain technology. However, scammers still find ways to lure people and take away all their investments.
We published several articles discussing how to spot scams and why it is important to do your own research before investing. These articles will help you determine the best platform to invest in. Some of the articles are listed below.
- Yield Farming’s risk everyone should know.
- PrivacySwap debunks cryptocurrency myths, providing a realistic approach to blockchain technology.
- The 7 Ways to Spot Scams and Rug Pull Guide
- How to: Avoid the four most common cryptocurrency scams
- How to DYOR
- Check these five things before you invest in a platform.
Aside from keeping you aware of crypto scams, we also wanted to inform you that we are still focused on strengthening the privacy and security of our platforms. With our DEX, we ensure that the professional auditors do all the necessary audits before releasing the DEX. As part of our roadmap, we also secure tier-one listings on various CEX. We are also pursuing a few KYCs, and the name of the verifiers (website and platforms) will be released soon.
We ensure that we are not just providing utility-based and high APR platforms, but we are also ensuring that PrivacySwap will be one of the safest platforms in the whole DeFi ecosystem. With that, we will remain soaring in the otherwise subdued crypto market.
Engage with us now!