Feb 17, 2023

Romance Scams Immune to Crypto Price Drops

Cryptocurrency scam revenue saw a dramatic decline in 2022, with a 46% drop from the previous year. This dip in revenue was largely attributed to the falling prices of crypto assets. However, two types of scams managed to remain unscathed by the market conditions.

According to Chainalysis’ crime report published on February 16th, the total crypto scam revenue for the year amounted to $5.9 billion. The report showed that the yearly crypto scam revenue from 2017-2022 had a strong correlation with Bitcoin’s price, with a three-week lag between price moves and changes in revenue.

But, two scam types were immune to the market’s decline — romance scams and giveaway scams. Romance scams saw the highest average victim deposit size in the year, with the average victim losing just under $16,000 — nearly three times more than the next biggest scam type.

Romance scams are typically built on the foundation of a relationship with the victim, in which the scammer convinces them that they need their help. Chainalysis believes that these scams are able to remain successful regardless of market conditions because they are playing to a victim’s emotions rather than greed.

Pig-butchering scams, a type of romance scam, have been identified as a growing area of concern within the crypto space. A UK investigation published in January found that half of all crypto companies involved with scams in the state were linked to pig-butchering scams.

The decline in crypto scam revenue in 2022 is a positive sign for the industry, but it is important to remain vigilant and aware of the various scams that are out there. NFTs, in particular, have become increasingly popular, and as such, NFT marketing and promotion is of the utmost importance.

NFTs are a great way to promote products and services, and Twitter NFT marketing is one of the most effective ways to do so. For those looking to get into the NFT space, working with a specialized NFT marketing agency or web3 agency can be beneficial. They can help to ensure that NFTs are marketed and promoted in the right way, and that they are sold to the right people.

Ultimately, the crypto space is still a risky one and it is important to be aware of the potential scams that may arise. However, the decline in crypto scam revenue in 2022 is an encouraging sign and shows that the industry is heading in the right direction.

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.