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Bots on the social media platform X could also be taking part in a job in inflating the value of as many as half of crypto meme cash.
That’s the discovering of a research by the Community Contagion Analysis Institute (NCRI), which analyzed greater than 3 million tweets involving as many as 18 altcoins over about 4 years to January 2023.
It says the value of greater than half of the analyzed cash, together with The Sandbox, LooksRare, IMX, Gods Unchained, and Gala, was influenced by inauthentic Twitter bot actions.
Utilizing a software named Botometer, the research discovered that of 182,105 accounts that tweeted in regards to the FTX-listed cash through the research period, 172,451 had been extremely more likely to be Twitter bots. 
“Twitter exercise performed a vital position in amplifying the worth of FTX-listed cryptocurrencies,” it mentioned. “FTX listings had been instantly adopted by surges sustained by Twitter exercise. NCRI evaluation exhibits that bot-like accounts comprised a considerable proportion(about 20%) of on-line chatter mentioning FTX-listed cash.”
It added that for half the FTX listed cash within the pattern, inauthentic tweet quantity confirmed indicators of forecasting subsequent worth. This implies that bots had been efficiently and intentionally deployed to affect modifications in FTX coin costs, it mentioned.
Was FTX Concerned in Meme Coin Value Manipulation?
The researchers additionally found a novel sample in bot-like actions. Their evaluation revealed that the amount of inauthentic tweets shot up constantly proper after FTX posted promotional tweets in regards to the listed altcoins, suggesting that this can be enhanced bot engagement on coin-related discussions on Twitter. Whereas the research didn’t straight allege FTX’s involvement, it raised questions on whether or not FTX intentionally engaged in coordinated inauthentic exercise on social media to “inflate market values artificially.'[‘
Meme Coins and Elon Musk’s Tweets
NCRI’s study also delved into the role of social media activities on the price rises of cryptocurrencies by analyzing the impact of Elon Musk’s recent tweets on the price of two meme coins named Pepe and PSYOP.
Pepe’s price shot up by more than 50% after Musk’s May 13 tweet about it. On June 24, after he retweeted a post with the caption, ‘I wake up there is another PSYOP’, its volume more than doubled over the next 24 hours.
Explaining Constitutional Amendments pic.twitter.com/oYkMPBe9Zi
— Elon Musk (@elonmusk) May 13, 2023
After taking over Twitter and rebranding it X, Musk suggested that his team has successfully eliminated a significant chunk of scamsters and bot accounts on the platform.
X could strengthen its account verification process and implement machine learning for bot detection to ensure more authenticity across the platform, NCRI said.
“As cryptocurrency grows increasingly mainstream, the potential for market manipulation through social media and inauthentic activity presents considerable risks to investors and the stability of financial markets,” it added.
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