Identifying and Analyzing Cryptocurrency Manipulations in Social Media [article]

Mehrnoosh Mirtaheri, Sami Abu-El-Haija, Fred Morstatter, Greg Ver Steeg, Aram Galstyan
2019 arXiv   pre-print
Interest surrounding cryptocurrencies, digital or virtual currencies that are used as a medium for financial transactions, has grown tremendously in recent years. The anonymity surrounding these currencies makes investors particularly susceptible to fraud---such as "pump and dump" scams---where the goal is to artificially inflate the perceived worth of a currency, luring victims into investing before the fraudsters can sell their holdings. Because of the speed and relative anonymity offered by
more » ... ocial platforms such as Twitter and Telegram, social media has become a preferred platform for scammers who wish to spread false hype about the cryptocurrency they are trying to pump. In this work we propose and evaluate a computational approach that can automatically identify pump and dump scams as they unfold by combining information across social media platforms. We also develop a multi-modal approach for predicting whether a particular pump attempt will succeed or not. Finally, we analyze the prevalence of bots in cryptocurrency related tweets, and observe a significant increase in bot activity during the pump attempts.
arXiv:1902.03110v2 fatcat:xz6oufmcujcjxnvmbknjjri3dm