Digital asset manager CoinShares has launched an experimental Twitter bot that allows users to determine the estimated fair market value of specific NFTs.
CoinShares Launches Twitter Bot for NFT Investors
On Thursday, CoinShares announced that it would launch a Twitter bot called “CoinSharesNFTAI”. According to the Twitter bot’s features, it would assist NFT investors in predicting a ‘fair price’ for every NFT listed on OpenSea.
The Twitter bot would aid NFT investors on Twitter in filtering the uncertainties in the NFT arena and determining how much an NFT would be valued with a single tweet. To activate the bot, users would need to tweet an OpenSea link to the NFT they wish to verify, followed by a mention of the bot (@CoinSharesNFTAI).
“Building on our crypto and quantitative expertise, we came up with an experimental project to price NFTs, whether you own them already or not. This model relies on tested mathematical concepts to predict a fair price for any NFT currently listed on @opensea.”
The bot’s predictions take into account data points, including transaction volume and the project’s track record in the NFT space, as well as factors like hype, rarity, utilities, content, and products.
According to CEO Jean-Marie Mognetti, NFTs are one of the freshly discovered digital assets in the crypto sector today, and it’s vital that everyone feels comfortable buying and selling them.
“To this end, we made our proprietary NFT pricing algorithm available to the public through our CoinSharesNFTAI Twitter bot.”
CoinShares is a digital asset investing and trading firm based in Europe that has pioneered unique financial products and services for the cryptocurrency industry.
CoinShares recently revealed its intention to develop an algorithmic trading platform, HAL, for retail traders. For $20 per month, retail traders will have access to a variety of algorithmic trading tactics through the platform.
Could Twitter Eventually Ban CoinShares’ Bot?
Prior to his latest bid to buy Twitter, Tesla CEO Elon Musk highlighted a lack of clarity on spam bots as one of the grounds he withdrew from acquiring the social media network. Malicious bots are typically automated, with phony Twitter accounts being used to push scams or propagate fake news.
According to Twitter representatives, building an automated feed, whether for malicious or other purposes, is quite simple in terms of computer programming. Because of this simplicity, the firm frequently has to remove one million spam bots per day.
Even as CoinShares prepares to release its NFT pricing bot, Musk has reopened the acquisition process, which might subject even helpful bots to additional scrutiny and result in revisions to Twitter’s present policies.
Flipsides of CoinSharesNFTAI
At the time of writing, CoinShares’ tool only works on OpenSea, leaving out some other marketplaces on Solana, such as LooksRare, and Magic Eden, which could leave the bot with gaps in its assessment of a particular NFT’s appeal and overall trading volume.
During the testing period, the product may potentially be exploited. Potential sellers may leverage the bot’s Twitter feed to determine which collections are the most sought based on the number of price queries the bot receives and then use that information to adjust the sale price of their NFTs.
Because the bot relies on OpenSea data, any compromise that corrupts OpenSea’s data could feed the bot erroneous information about the price of a particular NFT.