Coronavirus Has Erased 33% of Crypto Scammers’ Revenue: Chainalysis
The economic impact from the COVID-19 outbreak is even hitting crypto scammers, forensics firm Chainalysis found.
Research out Friday shows profit made through cryptocurrency scams has dropped considerably since the start of the year. On a seven-day moving average, revenue earned by scammers plummeted from $800,000 worth of crypto in the middle of January to below $300,000 at the beginning of April – almost entirely due to the dramatic market drop earlier this year.
Researchers initially thought the coronavirus might make people less susceptible to scams. But they found that just as many people were being affected. The number of individual transfers – the number of payments sent to scammers – actually hit a year-to-date high at the start of April.
What Chainalysis concluded was that the major sell-off in cryptocurrencies sparked by the coronavirus – total market cap fell by $100 billion in mid-March, according to CoinGecko – had a knock-on effect on scammers’ revenue.
“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,” Chainalysis said in its report.
“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.”
Author: Paddy Baker
ETHEREUM & EOS – These cryptos accelerate
The crash on the cryptocurrency market in March left Ether almost at the 2018 low of $ 83, EOS even hit that low. But there the buyers were ready, with a lively recovery the coins went up again. This has significantly improved the technical situation at least in the short term. Now it depends on how the cryptocurrencies will behave at the next hurdles – there the further, medium-term direction could decide. The chart technical situation of number 1, Bitcoin, was last discussed here: BITCOIN – The buyers keep it up.
Ether was recently able to stabilize between the USD 125 support and the USD 150-156 resistance area and level off sideways. The coin is now breaking out of this range and is climbing steeply to the next cross resistance at USD 175-180. If this price range is also sustainable, quotations above USD 185 would continue to rise to USD 210 or even USD 270.
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The price range at $ 152-156 is now an important support area. However, if Ether tilts back below USD 143 per day's closing price, the short-term picture will cloud again. Levies of up to $ 120-126 or $ 101 could then follow.
The current number 8 of the largest coins sprint up to the cross resistance of horizontal resistance, EMA50 and downtrend line at $ 2.80 – $ 2.86. If it is significantly higher, the larger hurdle is around USD 3.20 – 3.40. Only by overcoming them sustainably would it deliver larger buy signals with targets at $ 4.40 and $ 5.49.
Prices should not fall below USD 2.35 now in order not to cloud the short-term picture again. Then the bears could take over again and initiate falling prices of up to 1.90 and possibly 4.42 – 1.55 USD.
How Reddit’s New Ethereum Feature Could Be Huge for Crypto Adoption
If you’ve perused the “cryptocurrency” subreddit, you have likely heard the rumors that Ethereum is being used by Reddit — the giant social media forum with dozens of millions of users.
This discussion began with a post from “MagoCrypto,” who on Wednesday posted a video showing that on his Reddit app on his Android (Samsung), there was an integrated wallet with an Ethereum address, along with explanations of a digital coin/point system. The user, who purportedly works in the crypto space, expressed his confusion:
“Not sure, I just have the regular official app, didn’t install anything special.”
After some poking around, Decrypt, who managed to contact a spokesperson of the American social media giant, found out some more details. Their report indicated that Reddit is “working with one community to test a feature that represents a user’s involvement in a community.”
According to a recent follow-up from Mago, the project will use Ethereum-based ERC-20 tokens called “Community Points” that allow power users to access certain aspects of a community. A text from the Reddit feature Mago shared reads:
“Community points are fully controlled by the people who own them. They live on the Ethereum blockchain, which is the same technology as Bitcoin to guarantee property rights and control. Even Reddit cannot take them away.”
These points, the video of the beta program indicates, are seemingly different than karma, the traditional point-system on Reddit.
UPDATE: Reddit’s blockchain-based points system confirmed to be on Ethereum, and lot more! from CryptoCurrency
This move to dabble in crypto, namely Ethereum, isn’t exactly unexpected: Reddit’s co-founder Alexis Ohanian is a noted Bitcoin bull, while the forum has long been a home for members of the cryptocurrency community.
Although the details about this project are still hard to come by, members of the cryptocurrency community have been thoroughly pleased by the news that such a notable site is dabbling in Ethereum.
Ryan Sean Adams, a crypto investor at Mythos Capital and writer of the “Bankless” newsletter, expressed the importance of this feature in the below tweet, writing:
“Reddit [is] rolling out a community tokens system on…Ethereum. Could this 100x DeFi users? Wouldn’t take much.”
Reddit rolling out a community tokens system
Community tokens are ERC20s, DeFi-compatible
430 million Redditors
Could this 100x DeFi users?
Wouldn’t take much
And other social media platforms will follow
Ethereum is the internet’s property rights system
— Ryan Sean Adams – rsa.eth (@RyanSAdams) April 10, 2020
With BitInfo indicating that there are approximately 350,000 active Ethereum addresses, even 10% of the purported 430 million monthly active users using Community Points could result in 10,000% growth (100x) of the blockchain’s active user base.
Notably, for the time being, it seems that Reddit is keeping this project limited in scope, with the spokesperson confirming to Decrypt that it is currently only working with “one community.” But, this could change as time goes on.
Some, however, brought up long-term scalability implications as a concern, explaining that an instant order of magnitude increase in Ethereum transactions may bring the blockchain to the standstill unless a second-layer or custodial solution is rolled out.
Photo by Kevin Wolf on Unsplash
Author: Nick Chong