Aug 3, 2023

According to a report from Network Contagion Research Institute (NCRI), five tokens linked to Alameda Research, including BOBA, GALA, IMX, RNDR, and SPELL, were pumped by a legion of Twitter bots after FTX listed them.

Video transcript

Let's talk about some Sam coins. Y'all talk about SPFFTX and Alameda and the interwoven connectedness of those three entities as illustrated here in a nice report from a team that does social media analytics. They found that several Alameda link coins A K A Sam coins were pumped by Twitter bots prior actually immediately after their FTX listing. So anyway, this sort of shows the um the uh the interwoven uh nature of FTX and Alaia where some of the incentives weren't really properly aligned for those in the space, but were properly aligned for Alameda, the hedge fund to make a lot of money on some pretty low float tokens that have historically not performed well at all. So that's the finding as pre presented here by this research report. I'm gonna toss it straight to Danny for his thoughts, Danny, what do you think? Just another detail in an unwinding uh unfolding saga or something? Uh new and substantive? Oh, I think this is not substantive at all, right. This is really just traders trying to take any indication of a pump, seize upon it, make some money, right? If you've got anything to do with FTX anything linked to the FCX is going to go up just because it's in the news. And so that's what you see here because FX spec of the news with this listing, any Alam Alameda link token, maybe that's serum, maybe that's Savior. A whole bunch of different ones are out there is going to go up just because there's more eyeballs on it. So I don't really think that this provides any long term value. It's really just a short term opportunity to make some money. David, what about you? What do you think on this? Well, my first question is we're showing a render chart. There is render something that Alameda was big in. Anybody know, it's not anyway, that's a tangential question. But uh but no, I think that my, my initial takeaway here is I think this is a good demonstration of the limits of artificial intelligence if you've got Twitter Bots or, you know, I, I guess they're talking about Twitter bots, but also if you're doing algorithmic trading and people are trading on the Twitter bots that are pumping this stuff, um You know, maybe somebody will make some money off the pump, but a lot of people are also going to lose money because, you know, these bots don't necessarily understand the real world subtleties of everything that's going on. Um But also, yeah, I mean, I don't know, I, I don't know what to say about this except that, yeah, it's the same as it ever was. People are playing stupid games and some people will, will win real prizes. But, uh, I mean, these, the, the Alameda Tokens in the sense of like F TT and the internal projects, like, you know, those are, those are dead. I think it's safe to say. So if you're, if you're in those tokens, you're just gambling. Um, I, I can't speak to why we had a render chart there though. Yeah, I was just, I was just gonna say like some of these allegations are not especially new, right? I think this was sort of um uh an open secret, right? That Alameda was sort of uh trading its own book relative to FDX listings. And again, that sort of um, incestuous relationship between FTX and Alameda led ultimately to the downfall of both firms, right? And I think this was something that existed, uh for a while now that people have been talking about at least, and there was some data to support, um, support that because, you know, you'd see, you know, Alameda doing major investments in early stage token projects, you know, getting those allocations somehow there would be a listing on FTX in short order, uh boosting those positions again. And uh now we're seeing that some of that was, was aided uh seemingly uh by some Twitter bot activity, um will toss it to you though. Yeah, definitely just following up on what you're talking about there. I don't think it's any surprise to people at this point that there was absolutely zero firewall between LME to research and FX. The fact that FDX was listing tokens and then immediately having already be holding the bags or be pushing them on Twitter isn't surprising anyone. The Twitter bot campaigns. It's part of crypto, right? If, if you're not familiar with that. Well, now you are, if there's a token you're seeing on crypto Twitter, that's, you know, being talked about, there's a lot of hashtags for it. Well, there's definitely a chance that someone has an interest and you purchasing that and then perhaps I'm dumping on you later once they find it a good time, this is a pretty normal campaign and for FTX now needed to be engaged with this, I think just adds more power to the punch that although these allegations are not done yet and we still have to go to court, we still have to see how all that works out. There was a lot of slime and a lot of scam tactics underneath Alameda and FDX in order to get more people in the door for these retail bags. I think it just kind of goes to the heart of the case that the SEC is bringing up right now as well. Right, the SEC is concerned about retail investors who are gaining soccer into these games because they don't know what's going on in the SEC'S purview. They're probably unsophisticated they see something online, they see it trending, they might purchase a little bit of it. And then a few days later, all the liquidity has been pulled out from it. And I think that's something that going back to Bald Token we just saw. Right. A lot of people want to purchase the Bald Token because it was trending on Twitter for a little bit. There was a lot of hype around it, but within a few days, all the liquidity was pulled from out from the project itself and people went from a lot of money to no money very quickly while others profited on top of it. I think this just again, goes to the problem with crypto and the problem with these off the exchanges that the SEC is trying to hammer down on top of, I think we've been fairly critical of the SEC in a lot of the times we talked about them on hash. But in other instances, you look at stuff like this and you're thinking, oh, I kind of wish that a government regulator would come in here and hammer them a bit more. So we wouldn't see more of this activity. It's kind of hard to put these two things together with the Libertarian stranger thing crypto. And then also like the, the ways that we see people get harmed on the retail market. David. Uh Yeah, just to follow up on my, my, my previous comments, uh I had somebody clarify for me that um yeah, this was uh listing non non alameda associated non FT associated tokens like render. Um And then yeah, the Twitter bots were pumping it. So just to kind of repeat my previous point, like Twitter is not a great signal necessarily for long term investments, I guess. Let's let's put it that way if you're willing to uh speed trade and get in and out and ride pumps and you know how to do that, I guess, play the game. But, but if you're looking for investment investments, this is not the way to go because things like this happen all the time. Amen. Play stupid games, win stupid prizes.

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