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The problem to solve
- Being late. In crypto, being early to a project is often the key to a successful investment. By the time everyone has tweeted about a token, it’s usually too late – and those who join near the top tend to lose money. Ideally investors want to find out about new projects right after they join CT and before hype starts, but it’s difficult.
Another aspect of ‘being late’ is the limited-time nature of most airdrops, giveaways, testnets, etc. For example, it’s very easy to miss an airdrop aimed at everyone who interacts with a blockchain or a wallet within a set period of 24 hours.
- Too many influencers to follow all. There are hundreds of quality accounts – some focused on fundamental research and coins that can perform well in the long-term; others posting low-cap “gems” that pump and dump fast; others still posting technical analysis (TA) charts. To read all of their tweets (let alone act on them) would take up hours each day.
- Paid promos/shilling. Projects often use massive paid campaigns where hundreds of bots – and many real influencers - tweet that a coin is a ‘gem’ that is going to skyrocket. This creates an impression that everyone on Twitter is talking about the project. Buying a token based on such artificial promo campaigns can result in losses, but not all users know how to detect bot posts and ‘shills’ (paid advertising masked as organic praise).
- Unreliable feeds. The way Twitter algorithms work means that many useful tweets don’t appear on the feed – for example, if the user hasn’t interacted with a particular account for a while. This means missing out on potential opportunities.
- Complexity. A well-conducted research about a project on Twitter includes analyzing its own account; checking who follows it (including authoritative influencers and investors); the engagement rate (likes, retweets, comments); recent mentions of the project and influencer tweets about it; and if the project is running any activities or airdrops. This sequence can easily take half an hour or more per project, and should be repeated for many projects in order to pick the best opportunities.
- Difficulty finding out about new projects. There is no easy way to discover new projects until influencers start tweeting about them. Twitter search by keywords can help up to a point if the user knows what they are interested in (like ‘AI blockchain’), but it’s a limited tool.
- Complex interplay between whale buys and tweets. In case or coordinated pump campaigns, whales or influencers often start with buying large amounts of a token and only then launch a wave of tweets to get other users to buy it and pump the price. Alternatively, an influencer who received a lot of tokens for free as part of a promo collaboration starts to ‘shill’ the token and then sells as soon as the price climbs (known as ‘dumping on the followers).
A whale short scenario is also possible, where an entity short-sells tokens and then launches a negative campaign about the project to spread FUD (fear, uncertainty, and doubt) and cause users to sell. When the price dumps, the whale closes the short in profit.
In these scenarios, it’s the big buy or sell that is the entry signal, and the hype/FUD campaign that follows is the opposite signal, but tracking whale buys requires access to exchange monitoring tools. Simple Twitter research can lead to completely wrong results.
- Reacting to Twitter insights in time. Reading about a gem on Twitter is one thing, but buying it before it pumps is another. There are many ‘gems’ on different blockchains, all traded on different CEX and DEX platforms. Often users don’t have time to connect to an exchange immediately and thus miss the best entries – or, even worse, miss the moment to sell and end up backtracking to the entry and lower. Realistically it would take hours every day to track tweets, analyze and rank projects, and execute orders. It’s a full-day job, and for most users it’s simply too complex. That’s why we created PEPEGEM AI platform.