New Social Media Monitoring Tool in the Works for SEC, Helping to Understand the Crypto World Better
The Securities and Exchange Commission [SEC] has been researching the different scams and threats to the cryptocurrency world for quite a while, as they work on official regulations within the United States. One of the biggest areas that consumers are the most at risk for getting involved in this type of scam is via social media. To help them better understand the risks that investors face on this platform, they are preparing to setup a social monitoring tool, but they will require bids to develop the project.
Social media is a major part of the crypto industry, and nearly every platform has a Twitter account or a Facebook profile that they use to update users and to create excitement. New platforms and fraudulent platforms follow this kind of setup as well, which is one of the ways that scammers tend to accumulate information on accounts. For the SEC to understand the regulations that they need to establish, understanding the behaviors of bad actors on social media is a significant step.
Twitter bots are constantly working to push new coins, which are notable by their pump-and-dump schemes. Even established crypto members like John McAfee have used these methods to attract attention to their sales. Now, the SEC is hoping that the bids come through to help with the monitoring service and toolkit that will give them a better view of social media utilization.
The websites that the SEC are working on monitoring at the moment include Facebook, Twitter, Instagram, YouTube, Google+, and LinkedIn. However, the tool will also need to help them check out public forums and message boards that discuss cryptocurrency or ICOs. They prefer to also offer a protocol called sentiment analysis, based on the document they put out about the tool. Specifically, the SEC requires that this program can handle, “batch mining of social media data feeds, optimally through an API, possibly with sentiment analysis.”
Sentiment analysis, which is also referred to as “emotion AI,” specifically references technology that helps the SEC understand the intention and attitude of the speaker on various topics. Basically, the SEC wants to do more than track what posters say; they want to take on an NSA-type role, which means more surveillance to determine what is authentic. The tool should identify potential bot accounts and accounts that were falsely created by individuals.
This technology is incredibly new, and it focuses on the information acquired via artificial intelligence to decide if the intention behind a post comes with a positive or negative attitude. However, there are potential dangers to putting this power into the SEC’s hands, like the potential for industrial espionage in the form of rival coins and traders. A tool like this one is a good option for the SEC, assuming that the organization has the right intentions behind it. Transparency is crucial to cryptocurrency, and the enactment of this tool will hopefully maintain it.