A recent study conducted by the Network Contagion Research Institute (NCRI) has shed light on the significant role played by Twitter bots in artificially inflating the prices of altcoins. By analyzing over 3 million tweets related to 18 altcoins listed on FTX, the study found that bot activity had a substantial impact on the value of certain cryptocurrencies. Notably, half of the coins analyzed showed signs of price manipulation as a result of tweet bot activity.
The study also raised questions about the potential involvement of FTX or Alameda Research in coordinating the bot activity. The researchers observed that inauthentic tweet volume increased after FTX posted about a specific token on social media, suggesting a potential connection. This discovery raises concerns about whether these influential entities engaged in coordinated inauthentic activity to artificially inflate market values of certain coins.
In addition to examining bot activity, the study investigated the impact of Elon Musk’s tweets on two recent memecoins, Pepe (PEPE) and PSYOP. It was found that Musk’s tweets relating to these tokens significantly influenced their prices. For example, Musk’s tweet featuring a Pepe meme caused a price surge of over 50% within a 24-hour period. The study also discovered a surge in newly created bot accounts prior to the launch of Pepe, suggesting a concerted effort to use bots to amplify the token’s popularity.
The researchers highlighted that this phenomenon of coordinated bot activity could extend beyond the realm of cryptocurrencies and impact other securities, such as stocks. They pointed to the social media frenzy surrounding “meme stocks” like GameStop and AMC in 2022 as a comparable example. This suggests that the manipulation of prices through inauthentic social media activity is a broader concern that warrants attention and scrutiny.
Preserving the Findings as an NFT
As a testament to the significance of this research, the article can be collected as an NFT (non-fungible token). This unique digital asset not only serves as a historical record of the study’s findings but also demonstrates support for independent journalism in the crypto space.
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