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- 1 The overall market capitalization of the crypto market slipped over 4% intraday.
- 2 Bitcoin dropped below $24,000 and lost 5% in the past one week.
- 3 Crypto scams surged over 40% in 2022 compared to 2021.
Since the last few weeks, the crypto market has been struggling due to the U.S Securities and Exchange Commission (SEC) lawsuit against Coinbase and other leading cryptocurrency exchanges in the region.
On June 15, 2023, the overall market capitalization of the crypto market slipped more than 4%, and some primary crypto tokens and coins dropped over 5- 25% following actions taken by the SEC against the crypto industry.
The ongoing volatility in the crypto market has also troubled the investor moguls. Investors believe that investing in crypto-focused projects will be valuable only once the issues brought about by the SEC are resolved.
In the last year, dozens of crypto-focused companies have opted for bankruptcy because of crypto winters of tantrums between the SEC and its boss. The SEC and CFTC are fighting to list digital assets as ‘Securities’ and ‘Commodities.’
The other problem troubling the moguls and investors is the increasing number of scams and frauds in the crypto industry, which have tarnished the reputation of crypto assets. Compared to 2021, there was an increase of 40% in crypto frauds in the following year.
According to computer security provider, Kaspersky, crypto scams became the most common way for scammers to become rich in just a few days. As per the available data regarding crypto scams and frauds, North Korea is first, followed by Hong Kong and others.
Scammers target crypto users between the age group of 25-70 as it is easy to swindle them so as to obtain the required information.
Technology Advancement Aiding Scammers to Lure Users
Certik’s report states Crypto scams accounted for the loss of $60 million in May 2023. Earlier in April, it was $103 million. The crypto scams have been variating in the crypto-sphere of our market. By May of this year, Crypto scams totaled to $500 million year-to-date.
In the recent four months, CertiK’s reports evaluate that $429.7 million were stolen by crypto scammers. Some users of the KuCoin exchange lost over $22,000 after the Twitter account was hacked on April 24.
When defrauding projects or platforms defraud investors, related funds vanish, leaving sufferers with heavy losses, and now it has become prevalent. Such issues continue to shatter users’ faith in the cryptocurrency industry. They are ultimately resulting in the slowing down of development and progress.
According to CoinMarketCap, the leader of all cryptocurrencies, Bitcoin slipped more than 5.50% weekly and 4.09% intraday. At press time, BTC was trading at $24,873 with a trading volume of $16 billion.
When it comes to intraday trading volume, BTC is ranked 2nd as the first position was acquired by Tether(USDT). USDT’s 24-hour trading volume was $28 billion, and its market capitalization was $83 billion. Crypto’s overall market capitalization is constantly tumbling after the SEC’s recent actions. It slipped more than 4% in the last 24 hours and 5.03% weekly.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
