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Chainalysis: African crypto traders are least likely to get scammed

According to the recent analysis carried out by Blockchain forensics firm Chainalysis, traders in Africa have been less likely to get involved in crypto scams than traders in other regions in the past year.

The “2020 Geography of Cryptocurrency Report” revealed that the percentage of illegal cryptocurrency activity in the Africa region is much lower than in the rest of the world. Illicit cryptocurrency activity amounts only to 2% within the region’s $16 billion trading volume, 55% of which have been listed as crypto scams.

“People in many parts of Africa have fallen victim to financial scams common in the fiat world, such as pyramid schemes and other investment scams.” <...> “While scams still make up a large portion of illicit cryptocurrency activity in Africa, the share isn’t as high as it is elsewhere", the analysis stated.

The figures show that people in Eastern Europe get more easily engaged in crypto pyramid schemes and "giveaways", which makes the region quite the center of darknet activity. However, with 86% the East Asians are the leaders in all illicit crypto transactions sent to scam.

Such low numbers may seem odd since Africa is often associated with crypto Ponzi schemes and Nigerian princes. The report notes that what may be the reason keeping African users from even trying crypto platforms like Paxful is the greater awareness of scams in general.

As Binance South Africa country manager Tanya Knowles pointed out, growing crypto education may be another explanation, as to his belief the best approach to be taken is to make sure traders learn more about scams: "We need to get the basics in place before we open it up and say, go wild and start trading.”

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