Chainalysis Reports Millions Lost in Cryptocurrency Due to Fraudulent Tokens

02/17/2023 04:32 • Metaverse & Beyond • 75 views

According to the news on February 17, Chainalysis found after analyzing all the tokens launched on Ethereum and BNBChain in 2022 that out of the 1.1 million new tokens launched last year, if only the tokens that have been exchanged at least 10 times and traded for 4 consecutive days within a week after the release were calculated, the number of new tokens would be 40521. Of the 40521 tokens, 9902 (24%) had a price drop of more than 90% in the first week, indicating that there may be higher shipment activities. Chainalysis estimated that investors spent $4.6 billion in cryptocurrency to buy 9902 different suspected fraudulent tokens. Among them, 445 individuals or groups accounted for 24% of 9902 suspicious selling tokens.

Chainalysis: 24% of the new tokens in 2022 have the feature of higher shipment

Interpretation of the news:

Chainalysis, a leading blockchain data analysis firm, published a report on February 17 stating that 24% of 40521 tokens launched on Ethereum and BNBChain in 2022 experienced a price drop of more than 90% in the first week. This indicates the presence of fraudulent tokens released by scammers to lure investors into buying them, ultimately leading to investors losing a lot of money.

According to the report, if only the tokens that have been exchanged at least 10 times and traded for four consecutive days within a week after the launch were calculated, the number of new tokens would be 40521 out of 1.1 million launched last year. Out of these 40521 tokens, a whopping 9902 had experienced a price drop of more than 90% in the first week. Chainalysis estimates that these fraudulent tokens cost investors in cryptocurrency an estimated $4.6 billion.

The report also states that 445 individuals or groups accounted for 24% of the 9902 tokens categorized as suspicious selling tokens. This group seems to have a significant role in the circulation of fraudulent tokens.

The report shows that token scams are on the rise in the cryptocurrency world, and it’s essential to be aware of the risks before investing in any token. Scammers use token offerings as a means to swindle investors and steal their cryptocurrency. One way to stay safe is to research the token before investing and consulting professionals before making a decision.

In conclusion, this report by Chainalysis highlights a growing concern in the crypto world regarding the growing number of fraudulent tokens. It emphasizes the need for proper research, consultation, and caution while investing in cryptocurrency. Even though the market is volatile and unpredictable, it’s essential to stay informed to avoid scams and losses.

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Chainalysis Reports Millions Lost in Cryptocurrency Due to Fraudulent Tokens

Chainalysis: 24% of the new tokens in 2022 have the feature of higher shipment

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