How effective might it be to know what and when consumers are gaining interest in certain blockchain projects?
You might not know him but he might know you.
In the following article, I’ll describe to you how there exist of a community of cryptocurrency web crawlers and how they are using the info they data mine in order to spot the next 'moon'.
June 2019 — I met up with a cryptocurrency trader who had a unique approach to his entries and exits. He wanted to keep his identity anonymous and spoke as if he had an urgent meeting just around the corner every time we spoke.
He told me that he would let me in on his secrets for a $10,000 fee to which I had to decline but was intrigued and piqued his interest long enough to discover his methodology.
What the trader let me know was that he had a vast network of web crawlers supplying him data about what coins were being talked about, as well as operates multiple influential accounts on popular forums primarily to interact with bitcoin beginners such as Reddit, BitcoinTalk, Discord, Niche Facebook Groups and even sites like Quora.
Web Crawlersometimes called a spiderbot and often shortened to crawler, is an Internet bot that systematically browses the World Wide Web, typically for the purpose of web indexing.
Hype & New Money
If you’ve ever listened to traders chat online, you can tell they feel out the waters on forums and social media for a certain factor popularly referred to in the space as ‘Hype’. Speculative trading can be some of the most profitable returns on investment.
If you were in the right circles you might have heard of Chainlinks CEO’s laptop being hacked, and screenshots emerged of a rumored Facebook Libra partnership weeks before the platform received a lot of new investor interest.
Some influencers try to recreate this factor through paid groups or a large following on those platforms and have been successful but the trader I talked too went about it in an entirely different manner.
Target: Bitcoin Beginners
Our Trader in question makes a very strenuous effort to be the first friendly face you might meet if you are to have your interest piqued by Bitcoin and the Altcoin market in whole. In order to cover such a wide area of he utilizes web crawlers to query for specific phrases.
What is a blockchain?
How does Bitcoin Work?
What should I invest in June?
What wallet should I use?
Etc…
These are the types of users (questions) he targets because it gives him insight into where new money is headed, and he then uses their naivety to direct them towards his email list, his services, and attempt to influence their buying behavior.
It's a cycle that is fueled by the haze of ambiguity that sometimes surrounds new projects as well as the barrier to entry within Bitcoin.
Micro influencing the most susceptible to grow a cult-like following, and measuring the trends of new money entering the space, has become a business for him, one that he claims has netted him 7 figures in the last year...
Ethical Right of Passage?
We live in a period where we can accurately measure the social buzz around projects, something that isn't quantitative by nature.
Web Crawlers naturally are an ethical tool and one that serves a great variety in use. That said using data mining tools in order to target new investors is a grey area.
The welcoming yet mysterious facade of crypto peels away over time when misleading people is an initiation ritual.