Light

Ten days after opening a position in X based on crypto-influencer signals, the average accumulated return was -2.24%, while after thirty days it was -6.53%. Researchers from three different universities came up with these findings.
On the first and second days following the recommendations, the profitability of transactions was 1.57% and 1.83%, respectively. On the day after, tokens with a small capitalization had a profitability of 3.86%.
Put simply, expert tweets lead to temporary price spikes. Over time, the impact turns out to be detrimental.
Posts published by self-proclaimed experts and the most popular influencers tend to have the most noticeable impact.
The following data shows the top 25 industry influencers in terms of tracked tokens and number of mentions. When posts are more upbeat or include “buy” recommendations, this pattern becomes more pronounced.
Such recommendations are not very useful, according to the study’s authors.
Experts have speculated that the data might back regulators’ fears that crypto-influencers are deceiving investors.
Members from Texas A&amp;M, Harvard Business School, and Indiana University came together to form the team.
A total of 180 of the most influential crypto influencers had their 36,000 tweets used to compile the sample. The study’s time frame was two years, ending in December 2022, and it included suggestions for 1,600 assets.
In order to categorize tweets, researchers employed machine learning techniques.
The paper stated that the research methodology and data analysis shed light on the ways in which social media influencers can impact investment decisions.
This work emphasizes the importance of continuing to investigate how social networks affect the behavior of market players.
Just in case you forgot, on February 24th, crypto blogger Ben Armstrong (aka Bitboy Crypto) battled a developer going by the handle More Light in a duel. Two meme tokens rose to prominence as a result of the event.
Web3 network So-Col (Social Collectables), previously founded by bitcoin influencer Irene Zhao, raised $4.5 million.

Research shows that you might lose money following the advice of crypto influencers.

Blocksays

Other articles published on May 16, 2024

Bitcoin Price Alert: Key Indicator Issues Signal Amid Market Uncertainty

Neel Somani Steps Down as CEO

Deere & Co. Q2 Earnings Top Forecasts, But Shares Dip on Lowered Outlook

Bitcoin (BTC) Bangkit Lagi, Indikator Ini Jadi Acuan Menuju US$70.000

VeChain (VET) and Ripple’s XRP Gain Bullish Predictions as Charts Form Patterns for Significant U...

Tornado Cash Developer Appeals Verdict, KOLs Slam Dutch System

Join our free newsletter for daily crypto updates!