IncomeSharks, a financial analysis and trading firm, has raised concerns about the increasing number of scams in the cryptocurrency market. The company warned against normalizing scam behaviors, pointing out that the reckless attitude of some investors is making it easier for scammers to exploit them.
Notably, IncomeSharks shared its concern, warning the investors on its Twitter page:
Stop normalizing rugs. If you continue to buy worthless memes that take minutes to make and keep saying "it's just part of the game" the scammers won't stop. It's never been easier to be a scammer with how stupid people are being lately
— IncomeSharks (@IncomeSharks) April 27, 2023
The warning from IncomeSharks comes as the cryptocurrency market has seen a surge in scams, particularly involving worthless meme tokens. The company urged investors to stop considering such scams as “just part of the game,” stating that this mentality only emboldens scammers to continue their illicit activities.
This cautionary message aligns with recent findings from a webinar on crypto crimes by Eric Jardine, the cybercrimes research lead at blockchain analysis and security firm Chainalysis. Jardine revealed that this year’s report includes a new approach to categorizing scams, shedding light on the diverse strategies employed by scammers.
According to Jardine, scammers have shifted their focus to alternative methods such as free giveaway scams and romantic scams, particularly after the Terra collapse in 2022 made investors more skeptical. This change in tactics suggests that scammers are adjusting to market conditions and seeking out new opportunities when traditional investment scams become less profitable.
Jardine’s data indicated that when investment scams lose their effectiveness, the prevalence of romance and giveaway scams increases, showing that scammers are capable of adapting their methods based on the current market situation. In light of these findings and IncomeSharks’ warning, investors are encouraged to remain vigilant and conduct thorough research before investing in any cryptocurrency project.
