Elon Musk tweets and Twitter bot spam influences altcoin costs: Research

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Crypto-spouting Twitter bots might be taking part in a a lot bigger position in artificially inflating the value of altcoins than beforehand understood, a brand new research has advised.

Utilizing a pattern of assorted FTX-listed cryptocurrencies in a study printed Aug. 2, the Community Contagion Analysis Institute (NCRI) mentioned it analyzed over 3 million tweets posted between Jan. 1, 2019, to Jan. 27, 2023, surrounding 18 altcoins.

The research discovered that Twitter bot exercise performed a vital position in amplifying the worth of those cryptocurrencies, together with The Sandbox (SAND), Gala (GALA), Gods Unchained (GODS) and LooksRare (LOOKS), with half of the cash displaying indicators of worth affect because of tweet bot exercise.

It additionally discovered that these inauthentic tweets would enhance after FTX posted concerning the token on social media, which it mentioned raises questions on whether or not FTX or Alameda Analysis might have performed a job in coordinating the bot exercise.

Every line exhibits the typical variety of botted tweets, which elevated following FTX’s itemizing and point out. Supply: NCRI

“In actual fact, for half of the FTX listed cash within the pattern, inauthentic tweet quantity confirmed indicators of forecasting subsequent worth. This means that inauthentic networks efficiently and intentionally deployed to affect modifications in FTX coin costs,” it mentioned, including: 

“It begs the query, did FTX or Alameda have interaction in coordinated inauthentic exercise on social media to artificially inflate market values?”

Musk’s tweets impression PSYOP and PEPE

The research additionally regarded into the impression of bot exercise and Elon Musk’s crypto-adjacent tweets on two latest memecoins, suggesting the costs of Pepe (PEPE) and PSYOP have been influenced by each these elements.

NCRI detected a surge of newly created bot accounts earlier than the launch of PEPE — which all went on to tweet about one of many two cash.

Pepe Coin and PSYOP leveraged memes and have been additionally boosted by two of Musk’s tweets that seemingly gave a nod to every of the tokens, the research mentioned.

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Musk’s Could 13 tweet of a Pepe meme brought about the token’s worth to leap over 50% inside 24 hours.

Alongside Musk’s tweets, account creation surges happened a day previous to Pepe’s April 17 launch which advised an orchestrated effort to make use of bots to amplify the token’s recognition.

Chart displaying a big surge in bot accounts a day earlier than Pepe’s launch. Supply: NCRI

The research’s researchers mentioned this phenomenon might additionally have an effect on shares and different securities. They pointed to the social media frenzy in 2022 surrounding so-called “meme shares” reminiscent of Gamestop and AMC.

Journal: How smart people invest in dumb memecoins — 3-point plan for success