Elon Musk tweets and Twitter bot spam influences altcoin prices: Study

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Crypto-spouting Twitter bots may very well be taking part in a a lot bigger function in artificially inflating the value of altcoins than beforehand understood, a brand new research has prompt.

Utilizing a pattern of assorted FTX-listed cryptocurrencies in a study revealed 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 an important function 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 exhibiting indicators of worth affect because of tweet bot exercise.

It additionally discovered that these inauthentic tweets would improve 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 task in coordinating the bot exercise.

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

“Actually, for half of the FTX listed cash within the pattern, inauthentic tweet quantity confirmed indicators of forecasting subsequent worth. This implies 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 influence PSYOP and PEPE

The research additionally appeared into the influence of bot exercise and Elon Musk’s crypto-adjacent tweets on two current 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 had 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 Might 13 tweet of a Pepe meme induced 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 prompt an orchestrated effort to make use of bots to amplify the token’s recognition.

Chart exhibiting 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” equivalent to Gamestop and AMC.

Journal: How sensible folks spend money on dumb memecoins — 3-point plan for achievement