Bitcoin News and Finance
Social Media Bots Played Crucial Role in Inflating Value of FTX-Listed Crypto Assets, Report Finds Skip to main content

Social Media Bots Played Crucial Role in Inflating Value of FTX-Listed Crypto Assets, Report Finds

Social Media Bots Played Crucial Role in Inflating Value of FTX-Listed Crypto Assets, Report Finds

New analysis from the Network Contagion Research Institute (NCRI) reveals that bots on the social media platform X (formerly Twitter) likely played a major role in amplifying the value of cryptocurrencies tied to the now-defunct FTX exchange and its sister firm Alameda Research.

Social Media Bots Boosted FTX-Listed Coins, Says Report

Analyzing over three million posts from 2019 to 2023 mentioning 18 FTX-listed coins, NCRI’s report found bot-like X accounts made up around 20% of online chatter about these cryptocurrencies. The study suggests this inauthentic social media activity effectively forecasted price changes for half of the FTX-associated coins examined.

NCRI’s analysis shows FTX promotions on X immediately preceded surges in the coins’ values, with the proportion of inauthentic posts steadily growing over time to around 50% of total chatter. The findings indicate manipulative tactics were used to artificially boost market sentiment after the coins’ FTX listings.

The report also analyzed activity around recently launched crypto tokens like the meme coin PEPE, detecting abnormal account creation patterns and predictive links between bot posts and price changes. This points to ongoing potential market manipulation via coordinated inauthentic social media activity. The study found that the FTX-listed coins SPELL, IMX, GALA, RNDR, and BOBA were involved in this type of behavior.

“It is notable that bot activity appears to rise beginning with official promotion by FTX,” NCRI researchers detail. “This suggests that FTX promotion may have proven catalytic for attracting inauthentic amplification. While listing on FTX attracted substantial increases in overall chatter for each coin, it is notable that the proportion of inauthenticity in this chatter significantly increased over time.”

As cryptocurrencies become increasingly mainstream, the prospect of manipulation through bots and fake social media accounts poses major risks to investors and financial stability, the NCRI report concludes. The NCRI researchers further underscore the need for greater transparency and oversight of cryptocurrency markets prone to volatility from orchestrated hype and deception on platforms like X.

NCRI’s study demonstrates social media’s critical role in the meteoric rise and spectacular collapse of FTX amid allegations of fraud. The NCRI findings suggest the FTX empire leaned heavily on inauthentic online engagement to prop up worthless assets — a “bot-driven gold rush” with echoes of pump-and-dump schemes.

What do you think about the report published by NCRI regarding X bots and FTX-listed crypto assets? Share your thoughts and opinions about this subject in the comments section below.

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r
Post a Comment
Read more
Blogarama - Blog Directory