TRENDING

Home ยป Study Reveals Twitter Bots’ Impact on Altcoin Prices and Suspicions Surrounding FTX and Alameda

Study Reveals Twitter Bots’ Impact on Altcoin Prices and Suspicions Surrounding FTX and Alameda

FTX-listed cryptocurrencies and analyzed over 3 million tweets posted between January 2019 and January 2023

by coinbrit
0 comment

A recent study by the Network Contagion Research Institute (NCRI) suggests that Twitter bots may be playing a significant role in artificially inflating the prices of altcoins. The study focused on a sample of various FTX-listed cryptocurrencies and analyzed over 3 million tweets posted between January 2019 and January 2023, covering 18 altcoins.

Key Findings of the Study:

Twitter Bot Activity Amplifies Altcoin Prices: The research indicates that Twitter bot activity played a crucial role in amplifying the value of several cryptocurrencies, including The Sandbox Gods Unchained (GODS) and LooksRare (LOOKS). Approximately half of the coins studied showed signs of price influence due to tweet bot activity.

FTX Connection Raises Questions: The study found that inauthentic tweet volume would increase after FTX, a major cryptocurrency exchange, posted about a token on social media. This raises concerns about whether FTX or its affiliate Alameda Research might have been involved in coordinating bot activity to influence market prices.

Elon Musk’s Tweets Influence Memecoins: The research also examined the impact of bot activity and Elon Musk’s crypto-related tweets on memecoins. Pepe Coin and PSYOP were found to be influenced by both factors. Musk’s tweet featuring a Pepe meme caused the token’s price to surge by over 50% within 24 hours.

Possible Ramifications:

The study’s implications extend beyond the crypto market. The researchers suggest that similar bot-driven phenomena could affect stocks and other securities, citing the example of the social media frenzy in 2022 surrounding “meme stocks” like Gamestop and AMC.

The study conducted by NCRI sheds light on the influence of Twitter bots on altcoin prices, pointing out their potential role in artificially inflating cryptocurrency values. The suspicion of coordinated inauthentic activity involving FTX and Alameda Research raises further questions about market manipulation. Understanding and addressing such phenomena is crucial for maintaining the integrity and transparency of the financial markets.

Related Posts :

footer logo

@2023 – All Right Reserved.

Incubated bydesi crypto logo