Blockchain forensic company Chainalysis found that crypto traders in Africa were less likely to send or receive tokens to known fake addresses in the past year than sellers in other regions.
In its 2020 report on cryptocurrency geography from Chainalysis, the company stated that the percentage of illegal cryptocurrency transactions associated with fraud in Africa is not as high as in other regions of the world. Illegal cryptocurrency activity accounted for only 2% of the region’s approximately $ 16 billion in revenue from July 2019 to June 2020. Fraud accounted for 55% of this low level of illegal activity.
“People in many parts of Africa have been victims of common economic fraud in the currency world, such as pyramid schemes and other investment fraud,” the report said.
“While fraud still accounts for a significant proportion of illegal cryptocurrency activity in Africa, the proportion is not as high as in other countries.”
However, in Eastern Europe, where the number of illegal transactions this year was six times the number in Africa for all sizes of cryptocurrencies, more are likely to fall into pyramid schemes for digital currencies and “gifts”. The fraud has resulted in 50% of all cryptocurrencies being hacked for the highest proportion of illegal transactions in the region, and Eastern Europe being a hotbed for the dark web. Traders in East Asia were the most vulnerable to fraud: 86% of all illegal cryptocurrencies were sent for fraud.
So how do the numbers in Africa remain so low compared to other regions when they are often associated with Ponzi encryption schemes and Nigerian princes?
It is difficult to say, but the report notes that the increased awareness of fraud in general has made it difficult to persuade African users to even try crypto platforms such as Paxful, which means that those who are brave enough can be very aware of the possibilities of fraud. …
Another explanation may be increased coding training. Tanya Knowles, head of Binance in South Africa, said in March that the best approach for cryptocurrency traders in the country is to “make sure there is education about fraud … We need to lay out the basics before we open them up and say: wild and start. Trade. ”
One of the leaders now defending blockchain and cryptocurrency in Africa was once a victim of cryptocurrency fraud. Doris Ogedeir founded Blockchain African Ladies non-profit and Crypto Lioness platform, both of which aim to educate women in blockchain technology and digital currency trading, respectively.