Cryptocurrency SCAM: Over 1/4 of New Cryptocurrencies Launched in 2022 are Scams

By spoopy_mulder | Mainly Bitcoin | 19 Feb 2023

The cryptocurrency market has been on the rise in recent years, with many new tokens being created and launched almost daily. However, not all of these tokens are legitimate, and a recent study by Chainalysis has shown that over 1/4 of the new cryptocurrencies launched in 2022 were scams.

The study reveals that of the 1.1 million cryptocurrencies created in 2022, only 40,521 were traded for four consecutive days in their first week after implementation. Out of these, 24% of the surviving tokens appeared to be "pump & dump" schemes, where developers inflate the price of their tokens and then sell them off to unsuspecting investors, ending the scam.

The scams identified by Chainalysis have resulted in losses of over R$ 24 billion for investors, highlighting the importance of being cautious when investing in new tokens. The study also shows that these scams were created by only 445 individuals or groups, some of whom have repeated the same scam more than 250 times.

Chainalysis analyzed tokens within the Ethereum and BNB ecosystems, but warns that the number of scams could be even higher if other networks are taken into account. The study also revealed that over 96% of the tokens launched in 2022 were not even traded on the market, indicating the need for caution when investing in new cryptocurrencies.

Investors should be on alert with new cryptocurrencies in the market, especially those traded on decentralized exchanges, which have no listing filter. It's essential to conduct thorough research before investing in any new token to avoid falling victim to a scam.

In conclusion, the rise of the cryptocurrency market has attracted many scammers, and investors need to be cautious to avoid falling victim to pump & dump schemes. The Chainalysis study shows that over 1/4 of the new cryptocurrencies launched in 2022 were scams, resulting in losses of over R$ 24 billion. Therefore, it's crucial to research new tokens and only invest in legitimate ones to avoid losing money.

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