Litecoin Emerges as Second-Most Preferred Cryptocurrency on Dark Web
When it comes to cryptocurrency preferences among criminals, Litecoin has surprisingly emerged as the second-most dominant coin on the dark web, following Bitcoin. Recorded Future, a threat intelligence company, conducted an analysis of 150 prominent message boards, marketplaces, and illicit services and found that alongside Bitcoin, Litecoin is widely accepted as a form of payment, followed by Dash.
Changing Trends in the Dark Web
Recorded Future observed a shift in the cybercriminal underground in mid-2016, with discussions around growing dissatisfaction with Bitcoin as a payment method. Despite initial speculation that Dash would become the next major dark web currency, further research revealed that Litecoin has taken the lead. A poll conducted among several hundred members of a popular criminal forum showed that while there is no unified agreement on the next preferred currency, 30% of vendors are willing to accept Litecoin. Dash closely follows with 20% market share, while Bitcoin Cash ranks third with 13% acceptance among vendors.
However, Dash has refuted claims of its popularity on the dark web, stating that it does not have a presence on such platforms. Dash CEO, Ryan Taylor, emphasized that reports of Dash being widely accepted on the dark web are unfounded, pointing out that less than 1% of transactions on the Dash network utilize the PrivateSend feature.
Challenges with Bitcoin
Bitcoin, once the preferred currency on the dark web, has faced challenges due to high transaction fees and slow processing times. The increasing popularity of Bitcoin among mainstream users has led to a surge in transaction fees, making it less appealing for smaller transactions typical in the underground economy. Some criminals have expressed frustration over delayed transactions and high fees, leading to a search for alternative payment options.
Litecoin, introduced in 2011 as the second-oldest cryptocurrency after Bitcoin, has gained traction for its faster transaction speeds, lower fees, and increased mining capabilities. Its core technology is similar to Bitcoin’s but optimized for efficiency, making it a preferred choice for many dark web users.
Overall, the dark web ecosystem continues to evolve, with cryptocurrencies playing a significant role in facilitating illicit transactions. While Bitcoin remains popular, alternative coins like Litecoin are gaining prominence among criminals seeking faster, more cost-effective payment methods.