[Whoa] New SEC Social Media Monitoring Tool For Crypto Market Sentiment Analysis Is Happening

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.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

Digital Assets Beat Traditional Assets by a Wide Margin & Ethereum Outperforms Bitcoin

In 2020 to date, Bitcoin has seen a positive performance of 80% and Ethereum 217%. With these gains, digital currencies are leading this year, with...

Filecoin Miners Will Receive 25% Of The FIL Rewards Immediately After A Successful Network Upgrade

Filecoin (FIL) miners set to receive 25% of their rewards instantly for miners that successfully activated the FIP-004 protocol at block number #170,000. Given...

PayPal Exploring Acquiring Crypto Companies, Already in Talks with Bitcoin Custodian BitGo

PayPal is now exploring acquisitions of crypto companies, including bitcoin custodian BitGo, reported Bloomberg. This week, Paypal announcing support, buy, sell, and hold for cryptos...

Bitcoin Is Having A “Sell-Side Liquidity Crisis,” As BTC Buyers Outweigh the Sellers

After an explosive start of the week that took us to a 13-months high of $13,300, Bitcoin is taking a breather just under $13,000. Interestingly,...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today