By Evan Spicer
Director of Cryptocurrency Investigations
2022 Was the Year of Crypto Scams
After a hiatus since 2017, the crypto sector came roaring back in 2020 during the pandemic. This interest and enthusiasm led to speculation and as a result, a plethora of bitcoin scams. These include fake bitcoin mining, unlicensed crypto brokers and phony bitcoin wallets.
In 2022, the collapse of Terra UST Luna, Three Arrows Capital, Celsius, and FTX didn’t involve just bankruptcies, but as it turned out, at the heart of the losses were bitcoin scams. In the aftermath of these debacles are efforts for crypto recovery, many of which are still going on.
Will 2023 signal a brighter future for the crypto sector? Will there be greater or fewer bitcoin scams? According to blockchain experts from Coindesk and ShuftPro, the following are the top crypto trends for 2023.
What’s in Store for the Crypto Sector in 2023?
The Rise of Ethereum
At the beginning of the crypto craze, bitcoin was synonymous with digital coins. It seems that Ethereum will take over in number-one position in 2023. Ethereum’s successful merge and transition from proof-of-work to proof-of-stake model for producing more Ethereum are more efficient and environmentally friendly. As bitcoin price falls, more crypto enthusiasts are likely to turn to Ethereum.
More Meme Coins
Although many crypto users may demand more security, others will look for speculation, even fun. Meme coins are high-risk coins based on an animation, a meme or a cartoon. The highly popular Dogecoin is the most famous example. These coins are usually backed and used by avid fans, but have little or no underlying value.
Increase in DeFi Activity
DeFi stands for decentralized finance. The desire for a DeFi model is one reason people embraced the blockchain in the first place. Although there is a desire for more oversight, given the number of crypto scams in 2022, more people will seek a flight from regulation and will increasingly seek DeFi peer-to-peer financial services.
Although brokers aren’t likely to disappear, more people will seek DAOs to manage their money and investments. DAO stands for Decentralized Autonomous Organizations and they may revolutionize brokerage services and financial analysis. Instead of relying on a few experts, funds can be allocated according to a consensus reached by a “wisdom-curated crowd.”
Bitcoin Will Fall Behind
Bitcoin might fall to second place to Ethereum, as stated above, but it may not stop there. The huge number of bitcoin scams and the collapse of the original cryptocurrency may lead to further declines. Instead, people are likely to embrace stablecoins or Ethereum.
5.More Crypto Companies Will Collapse
The UST Terra Luna debacle led to the collapse of Three Arrows Capital, the crypto lender Celsius and many other entities. Similarly, the FTX collapse, which occurred at the end of 2022, is likely to send reverberations or even years. More crypto companies are likely to unravel in 2023 as a result of FTX and other major crypto scams.
Banks Will Offer Crypto Services
Although bitcoin scams will always be with us, cryptocoins are increasingly likely to be adopted by more conventional financial institutions. Major credit card companies and payment platforms are already offering crypto services. Mainstream banks are likely to follow suit as well, especially as crypto regulations are likely to be passed into law.
Blockchain Innovation Will Go Beyond Digital Money
The blockchain has many uses, but until now, its most high-profile role is in crypto transactions. However, the blockchain will be increasingly used as a venue for innovation and sharing ideas.
Stablecoins Will Become More Popular
One of the main arguments used by crypto skeptics is that cryptocurrencies don’t have underlying value. However, this isn’t true of stablecoins, which are backed by fiat currency or commodities. As more people start to use cryptocurrency, they will rely on stablecoins as a way to avoid fake coin-related crypto scams.
Crypto Regulations Will Be Adopted
In the European Union, laws governing the use and trade of cryptocurrencies are being passed and are expected to take effect in 2024. Several bills covering cryptocurrency regulations are currently pending. One would require all crypto entities to be licensed and, in the United States, be registered with the Securities and Exchange Commission (SEC). After the debacles of 2022 and myriad crypto scams, it wouldn’t be surprising if 2023 will see new crypto bills signed into law.
Have You Lost Money to a Crypto Scam? Make 2023 Brighter and Contact MyChargeBack!
If you’ve lost money to one of 2022’s many bitcoin scams, it’s important to have experts on your side. MyChargeBack will consult with you, launch an investigation, and will bolster your crypto claim. Don’t let crypto scams get away with it. We are on your side and will get you started on the road to crypto recovery.