According to the Network Contagion Research Institute (NCRI), automatic Twitter accounts raised cryptocurrency prices. The Alameda Research FTX Altcoins hedge fund failed to sell cryptocurrency and made less money than expected. New Jersey GovSTEM Scholars assisted in parts of the study. From January 1, 2019, to January 27, 2023, they examined 3 million tweets about 18 types of money. The investigation began on January 1, 2019, and ended on January 27, 2023.
After Elon Musk publicly discussed digital currencies, many rose in value. Due to Musk’s comments, more people exchanged an alternative cryptocurrency, increasing the amount traded by 50%. Musk struggles to track Twitter bots, according to the study. Social media’s impact on Bitcoin’s price was questioned.
NCRI’s Alex Goldenberg advised Twitter to make it harder to create bogus accounts, use computers to discover bots and give academics more access to deter problematic bot behavior. However, eliminating bots may make impartial experts’ reviews more difficult. He spoke about this.
Before the exchange crashed, Twitter bots drove up FTX token prices. This was discovered throughout the investigation. To manipulate the price of six FTX tokens, it created phony Twitter identities and manufactured up dialogues. BOBA, GALA, IMX, and RNDR are the coin names. Before the FTX, Alameda had five tokens.
Sam Bankman-Fried, who founded FTX, and his friends recognized Twitter might affect bitcoin markets. Social media may affect currency values, investors know. Because of money-related allegations, Bankman-Fried is in trouble with the government. They believe he lied about his business and broke the law. It’s challenging to face federal securities and wire theft charges. The US government perpetrates these atrocities.
According to one study, Twitter bots and social media disruptors have affected Bitcoin prices. To solve these issues and ensure fair and transparent markets, authorities and exchanges like Twitter could be examined. These findings also show that trading bitcoins on social networking platforms without rules may be risky