sentiment - Pwim.Net

eToro’s AI Copy Portfolio Trades on Sentiment

The eToro trading platform launched its latest user copy portfolio on Tuesday, an artificial intelligence (AI) tool that trades on the sentiments of 850,000,000 daily tweets.The eToro/Tie copy portfolio is the creation of a partnership between The Tie data analysis firm and Social Market Analytics (SMA) that leverages proprietary machine learning and natural processing technology to assess and quantify traders feeling towards digital assets. All eToro traders have to do is click copy on The TIE portfolio, with a minimum buy in of $2000, and the AI will diversify their crypto portfolio among the most positively discussed assets.

Crypto Market Driven By CrowdAccording to an introductory presentation released by The Tie on its partnership with eToro, there is a strong correlation between twitter sentiment and crypto market movements.

From the presentation, “Unlike traditional assets, cryptocurrencies do not have fundamentals. Bitcoin has no revenue, dividends or debt. The value of digital assets are driven by supply and demand, and movement is determined by the wisdom of the crowd.” In this day and age, Twitter is where the crowd holds the discussion.

While the analytics tool may be new to consumers, Joshua Frank, CEO, The Tie explained in a YouTube video, that hedge fund managers and investment firms have been leveraging the same SMA data stream the eToro copy tool now uses. Frank said, “eToro is a social trading exchange in itself, making it the perfect partner for The Tie’s technology.”

Bots and Overlaps

Every day, The Tie’s AI scours through the 850,000,000 tweets and analyses, sorts and interprets social sentiment toward cryptocurrencies. Filters are used to assess the relevance and remove spam and bots, and sophisticated algorithms study the language of the tweets and assign ratings to different investors. Through the evaluation process, only 10% of tweets on any particular currency usually remain in the stream. The presentation highlights how each tweet is scanned individually and extracted to a relevant category, but there are close to 80 overlaps between crypto-asset abbreviations and non-assets. “Using patented technology SMA is able to combat problems related to overlapping tickers across asset classes. For example, identifying whether an ETH tweet is on Ethereum or Ethan Allen, the publicly traded furniture company.”

Image via Shutterstock

Bitcoin Set to Recover From the Coronavirus Pandemic-Triggered Global Financial Crisis?

The price of Bitcoin has seen a decline of 8 percent from the start of this year until early April, and 90% of Finder’s survey panel believes it is caused by the coronavirus pandemic. Although COVID-19 made up for most of the explanation for the dip, many believe that the Plus Token scam also had an impact.

As economists are forecasting a global recession, the majority of the crypto community believes that Bitcoin could survive a global financial crisis. As governments around the world had been seen scurrying to produce and import scarce medical gear, BlockToken Co-founder Genson Glier added, “Most individuals will have some loss of faith in their government, especially given the crisis. This loss and lack of trust are just one of the reasons why BTC has been able to establish itself. I think people will see it as an additional asset class for wealth distribution, now more so than ever.”

Elvira Sojli, an associate professor at the University of New South Wales suggested that the upcoming Bitcoin halving event will support Bitcoin’s price. “The shrinkage in resources due to losses in the stock markets and demand for goods further depress the BTC price. The halving is the only thing keeping the price above the $5,000 threshold.”

Bitcoin as a safe-haven asset

The majority of those who were surveyed say that Bitcoin’s recent behavior affects its viability as a safe-haven asset; however, it has been suggested that the market is slow on “picking it up as a commonly tradable item.” This further suggests that Bitcoin is still lacking liquidity, while gold is currently increasingly being liquidated.

Bitcoin and Ethereum win sentiment scores

Those who were surveyed were asked if they had a positive or negative outlook on 11 cryptocurrencies. Bitcoin and Ethereum showed a majority of positive outlooks, while Binance Coin received the highest negative sentiment rate.

Ajay Shrestha, a Ph.D. candidate at the University of Saskatchewan commented, “I believe BTC (and ETH) will be more widely adopted on a long-term basis. BTC being a native cryptocurrency has lots of growth potential. Ethereum being adopted for the utility of the tokens and applications to utilize blockchain-backed digital assets will continue to rise and thrive.”

Crowd Sentiment Towards Bitcoin Tends to be More Positive Than Usual

Bitcoin (BTC) recently breached the psychological level of $40K, a fate which the leading cryptocurrency had tried for months in vain. As a result, crowd sentiment towards BTC has been on an upward trajectory because more traders have become optimistic about this cryptocurrency scaling the heights.

Crypto analytic firm Santiment explained:

“Bitcoin has settled into a $45K to $48K range that has encouraged traders to FOMO in anticipation of another run toward April’s ATH. Our data indicates optimism is up, but not euphoric in a way that leads to imminent BTC corrections.”

Bitcoin’s previous bull run touched an all-time high (ATH) price of $64.8K recorded in mid-April, prompted by significant institutional investment.

Nevertheless, a correction was imminent, which drove the price to lows of $28K as the crypto mining crackdown by Chinese authorities intensified from May.

Bitcoin stands at a region encountering heavy resistance

According to market analyst Michael van de Poppe, Bitcoin faced notable resistance between the $46K and $48K range. He explained:

“Bitcoin looks a bit over-exhausted in this region + heavy resistance.”

Crypto trader tweeting under the pseudonym CryptoHamster had previously noted:

“Bitcoin broke the 200D MA. The price is facing the resistance of the previously built sideways area with a large volume. One could anticipate the rejection from here initially, but if BTC keeps testing it, we might see the further evolution of the bullish scenario.”

Meanwhile, the three major central banks, namely the Federal Reserve (Fed), the Bank of Japan (BoJ), and the European Central Bank (ECB), seem to play an instrumental role in Bitcoin adoption.

Specifically, the value of BTC rises almost in tandem with the combined balance sheet of the three central banks. The combined balance sheet of Fed, BoJ, and ECB stands at almost $25 trillion.

Sentiment Recovers Stolen Funds with Bounty

Lending protocol A recent hacking incident using Sentiment resulted in the perpetrator stealing close to one million dollars. However, because to a reward of $95,000 that was offered to the hacker, the protocol was successful in recovering the stolen cash. Through the use of the Arbitrum blockchain, Sentiment spoke with the hacker, imploring them to “do the right thing” and restore the cash by April 6 at the latest. In addition, the policy guaranteed the same payment to anybody who was able to assist in determining who was responsible for the crime and bringing them to justice.

After monitoring the situation, the creator of MetaMask, Taylor Monahan, made the announcement that the hacker had returned 414 ether, which is equivalent to around $771,000 at the current exchange rate. After some time had passed, the hacker sent a further 51.75 ETH to the recovery address provided by Sentiment. The protocol said unequivocally that it had been successful in acquiring the monies and that the problem had been fixed.

On April 4, a hack was carried out, and it is thought that it was carried out as a consequence of a re-entry assault or a flaw. As was stated by a few members of the community, this episode underscores how critically important it is for businesses to take bug bounties seriously. Even one of the members gave the hacker kudos for “taking it by force” with their efforts. On the other hand, a different user of Twitter voiced their disapproval of the event, labeling it as “a bug bounty with a criminal step,” and asking businesses to provide greater and more open bug bounties.

Comparisons have been made between this attack and the recent one that occurred at Euler Finance, in which the Ethereum protocol awarded a reward to a hacker who returned almost 90% of the assets that had been taken. The hacker returned over 176.4 million dollars in digital assets while keeping roughly $20 million for themselves. Because of this occurrence, the significance of bug bounties as a method for resolving vulnerabilities in protocols for decentralized financial transactions has been further highlighted.

It is very necessary for businesses to take bug bounties seriously and provide awards that encourage ethical conduct in their employees. The usefulness of this strategy was recently shown by the fact that Sentiment was successful in regaining its data. Moving ahead, it is probable that other organizations will adopt similar tactics to manage possible security breaches in their systems. This will increase the likelihood that these breaches will occur.