Cryptocurrency
Why Twitter Bots Can Be Detrimental for Crypto Marketing Strategies
Social media is undeniably integral to the promotion and success of cryptocurrencies. One proven instrumental platform is Twitter.
Still, amid all its utility lurks a darker truth – the presence of Twitter bots and their potential to upend crypto marketing strategies.
Research indicates a significant correlation between a crypto’s social media engagement and its returns. Engagement, measured through various factors from likes and retweets to the time of a currency’s creation, suggests how an online audience responds to a crypto asset.
However, a skewed engagement coefficient could lead to misguided investment decisions.
One alarming revelation from the study of cryptos and their social media engagement is the influence of Twitter bots. These automated accounts, constituting between 9% and 15% of active Twitter users, can inflate the perceived popularity of a cryptocurrency.
These bots often generate an illusion of widespread excitement, a tactic familiar in pump-and-dump schemes. Consequently, artificial inflation can drive engagement coefficients unusually high, misleading investors and distorting marketing strategies.
Fake Engagement Proves Costly
Cryptocurrencies with extremely high engagement coefficients have been found to yield lower returns.
For instance, Krypto achieved impressive returns of up to 49% after two months. Then, it experienced a drastic dip to negative returns. The engagement coefficient for Krypto was almost an order of magnitude larger than other cryptos, suggesting possible bot interference.
The study also analyzed the prevalence of bot activity in crypto discussions using a tool called Botometer. This algorithm calculates the probability of a Twitter account being a bot. Higher mean bot probabilities were associated with lower-performance cryptocurrencies.
Latte, a DeFi cryptocurrency, had the highest mean bot probability and saw a 95% price decrease within three months.
A Cautionary Tale for Investors
The research suggests potential caution when a cryptocurrency has an engagement coefficient exceeding 10−3, where manipulation might be suspected. Investment strategies based on this data have also shown that the engagement coefficient could be useful in selecting cryptocurrencies with short-term high returns.
However, this approach may not be optimal for those aiming at long-term growth.
Returns over the span of a year were negative for investments, and there was not a significant difference in returns regarding the feature threshold when the returns were negative.
This suggests long-term returns are less dependent on social media features than short-term ones.
Crypto Marketers Must Take Note
So, where does this leave your crypto marketing strategy? The research suggests vigilance. While social media is a powerful tool, it is crucial to understand that not all engagement is beneficial.
Twitter can harm the overall credibility of a cryptocurrency’s marketing efforts. If a coin’s apparent popularity is revealed to be driven by bots rather than genuine engagement, it can undermine the brand identity and trust in the project itself and its team.
Twitter bots can distort perceptions, potentially leading to a volatile and uncertain investment climate. For stable, long-term growth, a balanced marketing approach that includes, but does not solely rely on, social media engagement is advised.
It is not just about the numbers, but the genuine human interest with a loyal community and activity behind those numbers that truly matter in a successful crypto marketing strategy.
Cryptocurrency
Liquid Lama Rolls Out DeFi Platform on ApeChain, Strengthening Security for Liquidity Providers
[PRESS RELEASE – Dubai, UAE, November 8th, 2024]
Liquid Lama, a pioneer in decentralized finance (DeFi), is set to debut on ApeChain with an advanced DeFi platform that combines security and community support. This innovative platform is specifically designed to address key challenges for liquidity providers (LPs). Developed after a careful analysis of the evolution of liquidity provision—from early models to LP V3—the platform aims to protect LPs from impermanent loss, particularly during bear markets.
“Traditional liquidity models haven’t effectively shielded LPs from market downturns, often leaving them vulnerable,” explained Vlad Pozniakov, Co-Founder at Liquid Lama. “Our mission is to create a resilient DeFi ecosystem where liquidity providers can participate with confidence, minimizing capital erosion risks.”
With a team of experienced DeFi developers and LPs, Liquid Lama seeks to transform liquidity farming through sophisticated tools while protecting capital during volatile market conditions.
Key Innovations of Liquid Lama:
- Impermanent Loss Protection: Liquid Lama introduces advanced hedging tools to mitigate impermanent loss, helping LPs counteract price fluctuations and protect their capital.
- Leverage for Potentialy Enhanced Earnings: As a pioneer in leveraging liquidity farming, Liquid Lama empowers LPs to amplify potential earnings while balancing risk through strategic hedging.
- Comprehensive Risk Management: Unique lending pools and hedging mechanisms enable LPs to maintain stable positions.
At the heart of Liquid Lama’s platform is the Dynamic Liquidity Market Maker (DLMM), a transformative system that dynamically balances assets within each pool to optimize liquidity and minimize slippage in digital asset trading. The DLMM’s real-time price adjustments, based on asset quantity changes, enhance liquidity stability and improve trading experiences.
The platform’s cohesive design integrates a unified liquidity pool, leverage trading, auto-compounding, and adaptive fee structures. This streamlined, user-focused approach boosts capital efficiency and maximizes LP earning potential.
Additionally, Liquid Lama employs a community-driven tokenomics model that prioritizes sustainability and long-term value creation. Through a buyback mechanism, part of the platform’s revenue is allocated to repurchasing LAMA tokens, which are then locked or burned to reduce circulating supply, thereby supporting token value. With rigorous third-party audits—including a comprehensive review by SEC3—the platform reinforces its commitment to security and reliability in the DeFi landscape.
“Unlike other platforms, Liquid Lama not only offers leverage and risk management but also adapts fees based on market conditions, creating a holistic solution for LPs to both earn and protect assets more effectively,” added Pozniakov.
Platform Roadmap:
Pre-sale and Platform Launch: Begin stages 1, 2, and 3 of pre-sale, followed by a full platform launch.
Q1 2025
- Enhanced Platform Features: Develop and strengthen platform functionality and user interface.
- Community Incentive Airdrop: Announce a major airdrop to engage the early community.
- New Project Listings: Expand offerings with additional DeFi projects.
Q2 2025
- Blockchain Integration: Announce partnerships with other blockchains.
- CLMM with Leverage on ApeChain: Roll out Constant Product Liquidity Market Maker (CLMM) with leverage on ApeChain.
Q3-Q4 2025
- Launch of Permissionless Pools: Enable users to create and manage custom liquidity pools with leverage.
- Token Minting: Begin token minting to support platform growth and ecosystem development.
“We’re excited to bring Liquid Lama to the DeFi community,” shared Pozniakov. “Our platform is designed to protect liquidity providers from market risks and empower them to optimize returns with innovative, adaptive tools suited for today’s dynamic DeFi landscape.”
About Liquid Lama:
Liquid Lama is an advanced DeFi platform that empowers liquidity providers by incorporating leverage into concentrated liquidity farming. The platform allows providers to maximize potential earning by up to 5x while maintaining a hedged position to protect their capital. Designed to innovate beyond traditional AMMs like Uniswap and PancakeSwap, Liquid Lama introduces dynamic fee rates and leverage for a more robust DeFi experience.
Liquid Lama is driven by a user-centric approach, committed to solving core issues to help traders, LP’s and investors make safer and more informed decisions. Guided by the motto ‘Better with every move,’ the company continuously strives to build innovative tools that respond to evolving market demands, prioritizing transparency, safety, and user empowerment in DeFi.
Liquid Lama differentiates itself through its unique focus on user-friendly leverage options and dynamic fee structures. This focus on innovation in underexplored areas of DeFi aligns with its mission to challenge unresolved issues, enabling users to optimize returns safely and efficiently.
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Cryptocurrency
Important Binance Announcement Concerning Ripple (XRP) and Dogecoin (DOGE) Traders: Details
TL;DR
- Binance added XRP and DOGE to its Smart Arbitrage program, offering rewards for users who participate in a special promotion.
- DOGE saw a 5% daily increase, while XRP’s price remained steady at around $0.55.
The Addition of XRP and DOGE
Earlier today (November 8), Binance added Ripple (XRP) and Dogecoin (DOGE) to its Smart Arbitrage program. The option requires a minimum investment of 12.5 USDT.
The exchange introduced a special campaign with rewards totaling 45,000 USDT to celebrate the new offering. The promotion period is from November 8 to November 21.
“All users who opt-in to the promotion and hold any Smart Arbitrage portfolio for more than 72 hours during the Promotion Period will receive a 10% Bonus APR on their first 1 – 2,500 USDT subscriptions. A total reward pool of 30,000 USDT will be distributed on a first-come, first-served basis,” Binance explained.
Additionally, regular and VIP 1-2 users who subscribe to any Smart Arbitrage portfolio with at least 10,000 USDT for more than 72 hours during the promotion period will enjoy a 45% trading fee discount.
“Rewards will be calculated for the trading fees incurred on Smart Arbitrage during the Promotion Period. A total reward pool of 15,000 USDT will be distributed on a first-come, first-served basis,” the announcement reads.
It is worth mentioning that users willing to participate need to complete the necessary KYC procedures and click the “Join Now” button.
Binance’s Smart Arbitrage program is an automated tool that lets users earn rewards by leveraging funding rate differences between futures and spot markets. It works by simultaneously holding opposing positions in both markets – long in one and short in the other – to collect funding fees while minimizing exposure to price volatility.
How Are XRP and DOGE Doing?
Allowing additional trading services on a major cryptocurrency exchange like Binance often boosts the prices of the involved assets due to increased liquidity, accessibility, and credibility.
The biggest meme coin in terms of market capitalization – Dogecoin (DOGE) – is well in the green today, pumping by 5% in the past 24 hours and currently hovering at around $0.20. Its solid performance aligns with the overall bullish environment of the entire cryptocurrency market following Donald Trump’s victory in the US presidential elections.
On the other hand, Ripple’s XRP has failed to catch up with its rivals, charting less substantial gains. It currently trades at approximately $0.55, showing little to no volatility on a 24-hour scale.
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Cryptocurrency
Major Challenges Affecting Institutional Adoption of DeFi: IntoTheBlock
The decentralized finance (DeFi) sector has experienced explosive growth over the years, but several challenges are causing slower institutional adoption. With its total value locked above $100 million, DeFi has yet to remove the strongholds preventing institutions from getting involved in the sector.
Crypto market intelligence platform IntoTheBlock believes these challenges are multifaceted; hence, DeFi must be developed from several angles to create a market that can handle the needs of a diverse range of participants.
Challenges Hindering DeFi Adoption
One of the major problems of the DeFi sector is regulatory uncertainty. The lack of clear regulations in the United States and other major markets prevents participation and limits DeFi adoption. Market players are forced to seek regions with regulatory clarity and countries that have shown greater openness to the crypto sector.
While battling regulatory uncertainty, crypto entities have created foundation companies and decentralized autonomous organizations (DAOs) to establish a structured entry path for private institutional capital into the DeFi space.
“In short, regulatory challenges hinder institutional DeFi adoption by raising compliance costs, restricting stablecoin use, and creating uncertainty, making it difficult for institutions to deploy capital and access liquidity,” IntoTheBlock added.
Another challenge hindering institutional adoption of DeFi is the underlying infrastructure around crypto wallets and direct access to liquidity. IntoTheBlock found a lack of institutional-grade solutions, as even leading wallets like MetaMask do not meet the needs of institutional players. This limits institutional participation and capital flow into DeFi.
Limited Liquidity And Weak Incentives
Furthermore, the insufficient coordination of asset listings and liquidity across DeFi ecosystems is hindering the sector’s adoption. Insufficient asset listings prevent the use of DeFi tokens across the crypto ecosystem, while limited liquidity can lead institutions into bad debt or trigger slippage and price impact risks for their lending strategies. IntoTheBlock mentioned Liquid Staking Tokens (LSTs) as an area of concern for this challenge.
Additionally, the DeFi sector lacks proper incentive and risk management structures. The space is full of unpredictable and short-term programs that affect medium-term capital allocations due to unreliable timelines and a lack of strategic planning. On the other hand, DeFi needs robust risk management practices to protect institutional funds from technical exploits.
Despite these challenges, IntoTheBlock said institutional investors are increasingly eyeing DeFi. The growing demand for institutional-grade DeFi solutions and initiatives could see the sector attract millions of dollars in capital in the coming years.
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