Twitter Bot Activity Play Crucial Role In Inflating Altcoin…



A study conducted by the Network Contagion Research Institute (NCRI) has shed light on the pervasive role of Twitter bots in artificially inflating the prices of various altcoins.

The research, which examined over 3 million tweets related to 18 different cryptocurrencies from January 2019 to January 2023, has uncovered startling revelations about the influence of bot activity on the market.

Clear signs of price manipulation were evident in coins like The Sandbox (SAND), Gods Unchained (GODS), and LooksRare (LOOKS) due to inauthentic tweet volumes, as indicated by the study. Twitter bot activity played a substantial role in amplifying the value of these altcoins.

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Source: Gandi News –

Suspicious Surge: Twitter Bot Activity Surrounding Altcoin Launches

Remarkably, half of the FTX-listed coins analyzed exhibited signs of price forecasting, raising suspicions about whether FTX or Alameda Research, the hedge fund associated with FTX, could have coordinated the bot activity.

Examining the effects of bot activity and Elon Musk’s crypto-related tweets on meme coins Pepe (PEPE) and PSYOP, the study made some intriguing discoveries. Notably, both tokens witnessed a surge in newly generated bot accounts in the period leading up to their respective launches.

Furthermore, the research unveiled a fascinating connection between Musk’s Twitter comments and the tokens’ market performance. Specifically, when Elon Musk appeared to endorse the tokens through his tweets, there were significant price jumps observed. For instance, after one of Musk’s tweets featuring a Pepe meme, Pepe Coin experienced a remarkable surge of over 50% within just 24 hours.

These findings have raised concerns about the potential for social media-driven market manipulation in the crypto space, and researchers warn that similar practices may extend to stocks and other securities. The frenzy surrounding so-called “meme stocks” like GameStop and AMC in 2022 serves as a pertinent example.


Crypto total market cap slides to $1.13 trillion on the daily chart at

Clamping Down On Bots

The NCRI emphasizes the need for more robust measures to combat malicious bot activity. They recommend implementing stricter account verification processes, employing machine learning algorithms to detect bots, and granting special permissions to certified researchers to aid in the fight against market manipulation.

The study also points to the collapse of the cryptocurrency exchange FTX and the role that inauthentic Twitter activity played in driving up the prices of tokens listed on the platform. Insider trading and bot-driven hype were found to be significant factors benefiting FTX and its associated traders.

The exchange’s founder, Sam Bankman-Fried, now faces serious legal troubles, with federal indictments alleging securities and wire fraud. FTX, once one of the world’s largest crypto exchanges, filed for bankruptcy in 2022.

Meanwhile, Elon Musk – who acquired Twitter in 2022 – has claimed that bot activity has decreased under his ownership. However, the NCRI study suggests that the issue still persists, raising questions about the effectiveness of current measures to tackle the problem.

Featured image from Reuters


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