A Network Contagion Research Institute study found that Twitter bot activity played a crucial role in amplifying the value of various FTX-listed cryptocurrencies, including the Sandbox, Gala, Gods Unchained, and LooksRare. The study analyzed over 3 million tweets posted between Jan. 1, 2019, to Jan. 27, 2023, surrounding 18 altcoins. It found that half of the coins showed signs of price influence as a result of tweet bot activity. In addition, the study found that these inauthentic tweets would increase after FTX posted about the token on social media, which raises questions about whether FTX or Alameda Research could have played a role in coordinating the bot activity.
The study also looked into the impact of bot activity and Elon Musk’s crypto-adjacent tweets on two recent meme-coins, suggesting that these factors have influenced the prices of Pepe and PSYOP. The study detected a surge of newly created bot accounts before the launch of Pepe, which all went on to tweet about one of the two coins. The study said that Pepe Coin and PSYOP leveraged memes and were also boosted by two of Musk’s tweets that seemingly gave a nod to each of the tokens. Musk’s May 13 tweet of a Pepe meme caused the token’s price to jump over 50% within 24 hours.
The researchers behind the study said that this phenomenon could also affect stocks and other securities. They pointed to the social media frenzy in 2022 surrounding so-called “meme stocks” such as Gamestop and AMC. The study raises questions about the role of social media and Twitter bot activity in influencing cryptocurrency prices and whether companies like FTX and Alameda Research are involved in coordinating such activity for their own gain.
Source: Cointelegraph
