{"id":13582,"date":"2024-05-16T18:49:26","date_gmt":"2024-05-16T15:49:26","guid":{"rendered":"https:\/\/forklog.com\/en\/study-reveals-crypto-influencers-recommendations-lead-to-losses\/"},"modified":"2024-05-16T18:49:26","modified_gmt":"2024-05-16T15:49:26","slug":"study-reveals-crypto-influencers-recommendations-lead-to-losses","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/study-reveals-crypto-influencers-recommendations-lead-to-losses\/","title":{"rendered":"Study Reveals Crypto Influencers&#8217; Recommendations Lead to Losses"},"content":{"rendered":"<p>The average cumulative return on positions opened based on crypto influencers&#8217; signals on X was -2.24% after 10 days and -6.53% after 30 days, according to researchers from three universities.<\/p>\n<p><script async src=\"https:\/\/telegram.org\/js\/telegram-widget.js?22\" data-telegram-post=\"wublockchainenglish\/12994\" data-width=\"100%\"><\/script><\/p>\n<p>The return on investments on the first and second days following recommendations was 1.83% and 1.57%, respectively, with small-cap tokens seeing a 3.86% increase after one day.<\/p>\n<p>In other words, experts&#8217; tweets trigger short-term price increases. In the long term, the effect turns negative.<\/p>\n<p>The impact is most pronounced for posts published by those who position themselves as experts and influencers with the largest number of followers.<\/p>\n<p>Below is the statistics of the top 25 opinion leaders in the industry by number of mentions and tracked tokens.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">Top 25 Crypto-Influencers by Number of Mentions <a href=\"https:\/\/t.co\/6c9lEucdZj\">pic.twitter.com\/6c9lEucdZj<\/a><\/p>\n<p>\u2014 Wu Blockchain (@WuBlockchain) <a href=\"https:\/\/twitter.com\/WuBlockchain\/status\/1791084473502855391?ref_src=twsrc%5Etfw\">May 16, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>This pattern is more pronounced when posts have a more positive tone or are related to &#8220;buy&#8221; recommendations.<\/p>\n<p>Researchers concluded that such advice holds little value.<\/p>\n<p>The data may support regulators&#8217; concerns that crypto influencers can mislead investors, the specialists added.<\/p>\n<p>The team comprised representatives from Indiana University, Harvard Business School, and Texas A&#038;M University.<\/p>\n<p>The sample was based on 36,000 tweets published by 180 of the most well-known crypto influencers. The study covered recommendations on 1,600 assets over a two-year period up to December 2022.<\/p>\n<p>Scientists used machine learning methods to classify the tweets.<\/p>\n<p>The study&#8217;s methodology and data analysis provide insight into how social media influencers can impact investment decisions, the document states.<\/p>\n<p>The work underscores the need for ongoing study of social media&#8217;s influence on market participants&#8217; actions.<\/p>\n<p>In February, crypto blogger Ben Armstrong, known for the YouTube channel Bitboy Crypto, held a bout against developer More Light. The event <a href=\"https:\/\/u1f987.com\/en\/news\/crypto-influencers-bout-boosts-two-meme-tokens\">led<\/a> to a rise in two meme tokens.<\/p>\n<p>Earlier, the social Web3 network So-Col (Social Collectables), founded by crypto influencer Irene Zhao, raised $4.5 million.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The average cumulative return on positions opened based on crypto influencers&#8217; signals on X was -2.24% after 10 days and -6.53% after 30 days, according to researchers from three universities. The return on investments on the first and second days following recommendations was 1.83% and 1.57%, respectively, with small-cap tokens seeing a 3.86% increase after [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13581,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[167,465],"class_list":["post-13582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-research","tag-social-media"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/13582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=13582"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/13582\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/13581"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=13582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=13582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=13582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}