Twitter bots are more influential than anticipated on the prices of new altcoins, according to a new study. The research, which also includes Elon Musk tweets, shows that the effect is spreading across various tokens.
Elon Musk tweets and Twitter bots have a huge impact on altcoin prices
According to a new Network Contagion Research Institute (NCRI) report, Twitter bots play a larger role than predictions in artificially inflating altcoin prices. NCRI examined the tweets of various cryptocurrencies on the FTX list. The report reveals that projects such as The Sandbox (SAND), Gala (GALA), Gods Unchained (GODS) and LookRare (LOOKS) are rallying in connection with the activity of Twitter bots.
In particular, the tweets shared by FTX via social media accounts attracted attention. The report includes concrete data that FTX or Alameda Research are coordinating bot activities. The chart below shows the average number of bot tweets increasing after FTX listed a new token.
At this point, NCRI analysts point out the spam tweets that followed the FTX listing:
In fact, for half of the FTX-listed coins in the sample, the volume of fake tweets showed signs of predicting subsequent price changes. This indicates that fraudulent networks have been successfully and deliberately used to influence changes in FTX coin prices. This raises the question of whether FTX or Alameda artificially inflated their market values by engaging in coordinated fake activities on social media.
PSYOP and PEPE were the last cryptos to rally with Elon Musk influence
The research examined the impact of Elon Musk’s tweets and bot activities on PEPE and PSYOP. PEPE, which debuted in April, quickly reached the top of the market trends. The report reveals that the prices of both meme tokens rallied under the influence of Musk. In terms of PEPE, a May 13 post by Musk had an immediate impact. PEPE saw its price rise more than 50% within 24 hours on that date.
Explaining Constitutional Amendments pic.twitter.com/oYkMPBe9Zi
— Elon Musk (@elonmusk) May 13, 2023
NCRI detected an increase in newly created bot accounts prior to the launch of PEPE. These bot accounts then started tweeting about any of the two coins.
Elon Musk influence aside, the day before Pepe’s April 17 launch, account creation surges also exploded. This shows that bots were used in a planned way to increase the popularity of the project. Research indicates that bots were used in a conscious effort to advertise Pepe. These two factors had significant effects on Pepe’s price.
Not just cryptocurrencies
The researchers note that such manipulations may not only affect cryptocurrencies, but may also affect stocks and other securities. Particularly in 2022, organized price manipulation operations on “meme stocks” such as GameStop and AMC took place. As we reported as Kriptokoin.com, GameStop later became a major player in the NFT industry.
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