Feb 17, 2023

Romance Scams Defy Crypto Price Slump, Average Victim Loses $16K

Cryptocurrency scams in 2022 saw a huge drop in revenue, with losses totaling $5.9 billion — a 46% decrease from 2021. This was attributed to the poor market conditions, as lower crypto prices generally result in lower scam performance. However, two scam types were found to be relatively immune to the price falls — romance scams and giveaway scams.

Chainalysis, in their Feb. 16 crime report, noted that the yearly crypto scam revenue from 2017-2022 almost perfectly tracks with Bitcoin’s price, with a three-week lag between price moves and changes in revenue. However, these two particular scam types do not show a positive correlation with Bitcoin’s price.

Romance scams, while having lower overall revenue as a category, had the highest average victim deposit size in the year — with the average victim losing just under $16,000, nearly 3x more than the next biggest scam type. These scams involve building a relationship with the victim, with the scammer convincing them that they need their help. Chainalysis explained that this kind of emotional pitch is probably equally effective regardless of trends in the wider market, as the victim’s primary goal isn’t to get rich quick, but rather to help someone they believe to be a potential romantic partner.

Romance scams, and particularly “pig-butchering” scams, have been seen as a growing area of concern within crypto. For example, a United Kingdom investigation published on Jan. 29 found that half of all crypto companies involved with scams in the state were linked to pig-butchering scams.

The data from Chainalysis highlights the importance of being aware of the different types of scams out there, and how they can affect the crypto space. To help protect yourself from scams, it is important to do your research and understand the different types of scams, and to be aware of the risks involved in investing in crypto.

It is also important to be aware of the different methods of promoting and selling NFTs, such as Twitter NFT marketing, NFT marketing agencies, and web3 agencies. These are all great ways to promote and sell your NFTs, but it is important to do your research and make sure you are working with a reputable agency or platform.

Finally, it is important to remember that crypto scams are still a very real threat, and the best way to protect yourself is to stay informed and vigilant. Be sure to do your research and stay up to date on the latest developments in the crypto space, and always be careful when investing in crypto.

Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.