Last updated on August 8, 2023
A new analysis conducted by the Network Contagion Research Institute (NCRI) has found that social media bots, particularly on the platform X (formerly Twitter), played a significant role in inflating the value of cryptocurrencies tied to the now-defunct FTX exchange and its sister company Alameda Research. The report reveals that bot-like X accounts accounted for around 20% of online discussions about 18 FTX-listed coins between 2019 and 2023, with this inauthentic social media activity effectively predicting price changes for half of the examined coins. The analysis also indicates that FTX promotions on X were followed by increases in the coins’ values, with the proportion of inauthentic posts steadily growing over time. The study further discovered abnormal account creation patterns and links between bot posts and price changes for recently launched crypto tokens, suggesting ongoing potential market manipulation through coordinated inauthentic social media activity. The researchers emphasize the need for greater transparency and oversight in cryptocurrency markets to protect investors from orchestrated hype and deception. The NCRI’s findings shed light on the role of social media in the rise and fall of FTX and highlight the risks posed by bots and fake accounts in the industry.
#SocialMediaBots #FTXListedCoins #CryptoAssets #MarketManipulation #Cryptocurrency #FTXExchange #AlamedaResearch #SocialMediaEngagement #Transparency #Oversight #InvestorProtection #OrchestratedHype #Deception
Image: https://weeklyfinancenews.online/wp-content/uploads/2023/08/elon3-scaled.jpeg
Comments are closed.