Elon Musk’s Tweets and Twitter Bots Influence Crypto Market Manipulation

Elon Musk’s Tweets and Twitter Bots Influence Crypto Market Manipulation

A recent study by the Network Contagion Research Institute (NCRI) has shed light on the role of Twitter bots and Elon Musk’s tweets in influencing cryptocurrency prices. The study analyzed over 3 million tweets related to 18 different cryptocurrencies from January 2019 to January 2023. Elon Musk’s tweets mentioning certain altcoins were found to cause significant price spikes, raising questions about social media-driven market manipulation. Additionally, the study revealed how inauthentic activity on Twitter contributed to the price increase of tokens listed on FTX, a crypto exchange that eventually collapsed. This article explores the implications of the study’s findings and the challenges faced by social media platforms like Twitter in curbing bot activity.

Elon Musk’s Tweets and Cryptocurrency Price Spikes

Elon Musk’s tweets have a remarkable impact on the cryptocurrency market. Mentions of specific altcoins in his tweets have led to price spikes of up to 50% within a day. For example, a tweet featuring a kitten by a pseudonymous Twitter influencer resulted in nearly doubled trading volume of a specific altcoin, known as PSYOP. Another tweet by Musk, featuring Pepe the Frog memes, caused a more than 50% price increase in the altcoin PEPE. The study raises concerns about social media-driven market manipulation in the cryptocurrency space and the challenges in curbing bot activity.

The Challenge of Curbing Bot Activity on Twitter

Elon Musk’s acquisition of Twitter raised expectations of better control over bot activity on the platform. Musk claimed that bot activity has decreased since the acquisition, but the study findings suggest otherwise. Curbing bot activity requires API changes, but such changes might also hinder independent audits by third-party researchers. The study’s lead intelligence analyst, Alex Goldenberg, recommends stricter account verification, machine learning for bot detection, and special permissions for certified researchers to combat malicious bot activity and protect transparency.

FTX and Twitter Bots

The NCRI study also highlights how Twitter bots contributed to the price increase of tokens listed on FTX before the crypto exchange’s collapse. Inauthentic chatter on Twitter influenced the prices of six tokens listed by FTX, including BOBA, GALA, IMX, RNDR, and SPELL. The study suggests that bot-like accounts were used to manipulate market sentiment and drive up FTX-listed token prices. FTX founder Sam Bankman-Fried and his team were well aware of Twitter’s influence on the crypto markets and how sophisticated investors could extract value from social-media-driven price action.

FTX, once one of the world’s largest crypto exchanges, filed for bankruptcy in 2022. Founder Sam Bankman-Fried now faces federal indictment charges for alleged securities and wire fraud. The Securities and Exchange Commission (SEC) has also filed charges against Bankman-Fried, accusing him of building his empire on a “foundation of deception.” Bankman-Fried declined to comment, and neither the SEC nor FTX immediately responded to requests for comment.


The study by the Network Contagion Research Institute has exposed the influence of Twitter bots and Elon Musk’s tweets on cryptocurrency prices. The findings raise significant concerns about market manipulation and the challenges social media platforms face in curbing bot activity. FTX’s collapse and the legal troubles faced by its founder serve as a cautionary tale for the crypto industry. As social media continues to play a crucial role in shaping cryptocurrency prices, measures must be taken to ensure transparency and protect investors from potential manipulations.

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