Will CoinShares’ bot be banned from Twitter?
According to CoinShares, the CoinSharesNFTAI bot feeds various OpenSea data points to tested mathematical models to predict the fair price of an NFT, irrespective of whether you own it. The bot considers factors like hype, rarity, exclusive privileges, the collection’s transaction volume, and historical sales data in predicting the NFT price. It was designed to help determine the cost of an NFT during the current bear market, far from the heady days of 2021 that saw the prices of popular collections like Bored Ape Yacht Club seemingly skyrocket for no other reason than that major celebrities owned them.
“NFTs are the newest asset to come to crypto markets and it’s important that everyone feels comfortable buying and selling them,” said CoinShares CEO Jean-Marie Mognetti.
The bot will only provide price estimates for a limited group of NFT collections, which for now includes Meebits, BAYC, Doodles, and Pudgy Penguins. The list of supported collections will be updated weekly.
Previously, CoinShares had developed a bot named Hal to be an emotionless companion quant trader to help people trade crypto.
Before his latest offer to buy Twitter, Tesla CEO Elon Musk cited a lack of clarity on spam bots as one of the reasons he withdrew from buying the social media network. In general, malicious bots are automated, fake Twitter accounts often used to promote scams or spread fake news.
According to Twitter spokespeople, creating an automated feed, be it for malicious reasons or otherwise, is relatively easy from a computer programming perspective. This simplicity may be why the company often has to delete one million spam bots daily.
Now, even as CoinShares launches its NFT pricing bot, Musk has renewed the acquisition process, which could bring even helpful bots under increased scrutiny and result in changes to Twitter’s current guidelines.
Weaknesses of CoinSharesNFTAI
At press time, CoinShares’ tool only works on OpenSea, leaving out other marketplaces like Rarible, LooksRare, and Magic Eden on Solana, which could leave the bot with holes in its perception of a particular NFT’s desirability and overall trading volume.
The product could also be subject to abuse during its experimental phase. Potential sellers could interrogate the bot’s Twitter feed to find out which collections are the most desirable based on how many price inquiries the bot receives and use that information to change the selling price of their NFTs.
Since the bot depends on data collected from OpenSea, any breach corrupting OpenSea’s data could feed the bot incorrect information regarding the price of a specific NFT.
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