Research Summary
The report delves into the manipulation of the crypto market through social media, particularly Twitter. It highlights how bots are programmed to mimic human behavior and can be used to influence public opinion in the crypto world. The report specifically points out allegations against FTX/Alameda for using bots to promote tokens they had invested in. The Network Contagion Research Institute (NCRI) released an examination suggesting FTX’s involvement in bot activity to increase demand for tokens on Twitter. The report also touches upon the “memecoin” craze and how certain coins reached significant market caps due to a mix of genuine and bot-driven activity.
Actionable Insights
- Market Manipulation: Bots are being used extensively to manipulate the crypto market through social media.
- FTX/Alameda Allegations: There are claims against FTX/Alameda for using bots to promote their invested tokens.
- Bot Influence: Despite being a small percentage, bots contribute to a significant portion of the chatter about coins on Twitter.
- “Memecoin” Craze: Coins like $PEPE and $PSYOP saw rapid growth, partly due to bot-driven activity.
- Investor Caution: Crypto investors need to be discerning about the information they consume, especially from social media.
