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Only 1% of the $ 1 trillion trading in cryptocurrencies in 2019 is illegal

    The Ethereum network has just been

    Follow webinar of Chainalysis on March 5, crypto transactions worth more than $ 1 trillion took place in 2019, and only 1.1% of them were illegal.

    Apply cryptocurrencies over time, from 2017 to 2019. Source: Chainalysis
    Apply cryptocurrencies over time, from 2017 to 2019. Source: Chainalysis

    Minimize the impact of the darknet market

    In general, as the use of cryptocurrencies continues to grow and the number of use cases for cryptocurrencies is expanded, illegal transactions on a percentage basis, continue to decrease, This implies that the industry is much healthier today than it was in the beginning when most of the trading volume came from darknet markets.

    Industry-wide cooperation to prevent cryptocurrency hackers

    The division of the total amount of cryptocurrencies joining the exchange. Source: Chainalysis
    Divide the total number of cryptocurrencies joining an exchange. Source: Chainalysis

    When many cryptocurrencies joined the exchange, they were still targeted by cryptocurrency hackers. However, the success rate of criminals has decreased. There was a decline after 2018 when the criminal group stole nearly $ 1 billion worth of cryptocurrencies. So these numbers have been decreasing ever since.

    Number of attacks on the exchange compared to the total value stolen by year (as of February 2020). Source: Chainalysis
    Number of attacks on the exchange compared to the total value stolen by year (as of February 2020). Source: Chainalysis

    Not only have exchanges implemented more sophisticated cyber security measures, but industry-wide cooperation and coordination with law enforcement agencies also helps ensure the entire ecosystem is safer. . According to Chainalysis, this extensive cooperation has helped DragonEx's customers recover stolen money.

    Halving – the newly mined coin goes straight to the exchange

    The destination of the deposits from mining groups, 2019. Source: Chainalysis
    The destination of the deposits from mining groups, 2019. Source: Chainalysis

    The majority of newly mined coins are going straight to the exchanges. This fact is especially important because we are only less than 70 days away from halving. This implies that after halving, even if miners decide to send all their newly mined funds to exchanges, it does not compensate for the lack of effectiveness from the reduced mining reward.

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    According to CoinTelegraph
    Translated by ToiYeuBitcoin

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