Are Crypto-Spouting Twitter Bots Artificially Inflating Altcoin Prices?
Adekunle Joshua
Crypto-spouting Twitter bots may be artificially inflating altcoin prices, a new study suggests
The Network Contagion Research Institute (NCRI) analyzed over 3 million tweets surrounding 18 altcoins from Jan 1, 2019, to Jan 27, 2023
Twitter bot activity played a significant role in amplifying the value of cryptocurrencies like The Sandbox (SAND) and Gala (GALA), among others
Inauthentic tweets increased after FTX posted about the tokens, raising questions about coordinated bot activity involving FTX and Alameda Research
Half of the FTX listed coins showed signs of price influence due to inauthentic tweet volume, suggesting deliberate efforts to influence FTX coin prices
The study also found Elon Musk's tweets impact memecoins Pepe (PEPE) and PSYOP, with bot accounts surging before Pepe's launch and Musk's tweets boosting both tokens
The researchers warned that similar bot activity could affect stocks and other securities, citing the 2022 social media frenzy around "meme stocks" like Gamestop and AMC
