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African traders are less likely to fall for crypto scams

September 17, 2020

Blockchain forensics firm Chainalysis found that cryptocurrency traders in Africa were less likely to send or receive tokens from known fraudulent addresses over the past year than traders in other regions.

In Chainalysis’ “Cryptocurrency Geographical Report 2020” the company says that The percentage of illegal cryptocurrency activity related to fraud is not as high in Africa as it is in other regions of the world. Illegal cryptocurrency activity accounted for only 2% of the region’s trading volume of around $ 16 billion from July 2019 to June 2020. Fraud accounted for 55% of this small amount of illegal activity.

Source: Chain analysis

“People in many parts of Africa have fallen victim to frequent trusted-world financial frauds, such as pyramid schemes and other investment frauds.”the report stated.

“While fraud is still a large part of illegal cryptocurrency activity in Africa, it is not as high as elsewhere.”

African traders are less likely to fall for crypto scams
African traders are less likely to fall for crypto scams

In Eastern Europe, where illegal transactions accounted for six times more than Africa’s numbers for total cryptocurrency volume this year, more people are likely to fall for cryptocurrency pyramid schemes and “freebies”. Fraud has compromised 50% of all cryptocurrencies at the much higher level of illegal transactions in the region, and Eastern Europe is full of dark web activity.. East Asian traders were most likely to fall for fraud. 86% of all illegal cryptocurrencies have been sent to scams.

Source: Chain analysis

How have the numbers stayed so low in Africa when compared to other regions when they are often associated with cryptocurrency Ponzi programs and Nigerian princes?

It’s hard to say, but the report notes that increasing awareness of fraud in general has made it difficult to convince African users to try crypto platforms like Paxful, which means that those who are brave enough to get on with it Are probably well aware of the possibility of fraud.

Growing crypto education could be another explanation. Binance South Africa’s country manager, Tanya Knowles, said in March that the best approach for cryptocurrency traders in the country is to “make sure there is fraud awareness … we need to get the basics in place beforehand.” Open it up and say let’s go wild and start acting. “

One of the leaders now advocating blockchain education and cryptocurrencies in Africa was once a victim of crypto fraud. Doris Ojuedeire founded the non-profit Blockchain African Ladies and the Crypto Lioness platform to educate women about blockchain technology and cryptocurrency trading.

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