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

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

Utilizing a pattern of assorted FTX-listed cryptocurrencies in a study printed Aug. 2, the Community Contagion Analysis Institute (NCRI) mentioned it analyzed over 3 million tweets posted from Jan. 1, 2019, to Jan. 27, 2023, involving 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 value 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 may have performed a task in coordinating the bot exercise.

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

“The truth is, for half of the FTX listed cash within the pattern, inauthentic tweet quantity confirmed indicators of forecasting subsequent value. 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 interact 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 latest 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 Could 13 tweet of a Pepe meme precipitated the token’s value 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 may additionally have an effect on shares and different securities. They pointed to the social media frenzy in 2022 surrounding so-called “meme shares” similar to GameStop and AMC.

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