Prices of memecoin bob (BOB) slid as much as 45% on Sunday as its popular automated Twitter bot was suspended after the social media giant’s owner Elon Musk called the account a “scam.” Twitter also suspended another automated bot called @AskTheWassie, a comic frog that operated similarly to @ExplainThisBob on Sunday.
“Promotion of scams under the guise of being a funny/helpful bot will result in suspension. Doesn’t matter how much you pay us,” Musk tweeted.
This incident highlights the immense influence and power of social media in the Bitcoin industry, where a single tweet can have far-reaching consequences. Yet, its community can rally and upend any suspension.
Twitter takes action
Elon Musk, known for his active presence on Twitter and vast following, triggered the chain of events. Musk expressed doubts and concerns about the legitimacy of a memecoin that had gained significant popularity recently. Referring to it as a “scam crypto,” he advised his followers against investing in it.
On June 18, in response to a message from the AI bot, Musk tweeted that the account was a scam. Shortly after his tweet, the account was suspended. Data shows BOB prices quickly fell from $0.000031 to $0.000016 on Sunday as traders likely reacted to Twitter’s actions, reaching a market capitalization of $13 million.
Suspension of the AI bot
The Explain This Bob account, created by Prabhu Biswal from India, had amassed over 400,000 followers. The bot utilized OpenAI’s GPT-4 model to understand and respond to tweets from people who had tagged the account.
The bot was linked to BOB, an ERC-20 memecoin launched in April 2023. The price of BOB TOKEN has risen by 0.63% in the past 7 days until the suspension. The current price is $0.000190 per BOB. The new price represents a new all-time high of $0.000190.
Ironically, Elon Musk’s tweet on April 20, where he expressed his affection for Bob in response to one of the bot’s tweets, was prominently displayed on the project’s website. Hence, his decision to suspend the bot represents a sharp reversal from his previous opinion.
Impact on the memecoin and investors
The consequences of this incident extended beyond the immediate suspension of the AI bot. Musk’s allegations and the subsequent Twitter suspension significantly impacted the value of the memecoin itself. The dispute affected investor sentiment, leading to a wave of sell-offs and substantial losses for those who had made significant investments in the memecoin.
The automated @ExplainThisBob account quickly went viral on Twitter in late April for its witty summaries and comedic responses to tweets. Musk once replied “I love bob” to an @ExplainThisBob in April, aiding a quick price surge at the time. Swiftly, the tide changes in another direction with Elon Musk’s influential tweets.
Crypto community appeals for Bot’s release
Since the suspension, several members of the crypto industry have appealed to Musk to lift the restriction and restore access to the bot account. The team behind the BOB token posted a meme depicting Musk monitoring a distressed “Bob” in jail, accompanied by the hashtag #FREEBOB.
However, Twitter has not taken any action against the Bob Token account. In response to the suspension news, the project’s team amusingly posted a meme showing Musk observing a distressed “Bob” in jail. Musk said last week that Twitter would crack down and suspend accounts that seemed to “game its verification system” and “self-promote or advertise in a misleading way.”
Community support and defense
Crypto influencer @CryptoDefiLord praised the Bob Token project, calling it “the only meme project whose utility I appreciated” and describing the bot as “a good bot.” Most observers believe that BOB is not a scam currency and that the suspension is unjustified. They argue that the token’s launch was fair, BOB is fully decentralized, and it features a 0% tax mechanism.
Furthermore, it has been alleged that the team did not allocate any tokens or conduct airdrops before the April launch of the Bob Token. Musk’s allegations add fuel to the already heated debate surrounding the intersection of cryptocurrencies and AI.
Broader context
Coincidentally, just days before this incident, the European Consumer Organization (BEUC) released a study accusing major social media platforms, including Instagram, TikTok, Twitter, and YouTube, of facilitating scams involving digital assets. Elon Musk’s recent actions align with the concerns raised in this study.
The BEUC study highlighted how scammers take advantage of the lenient restrictions on platforms like Instagram and TikTok to exploit young and naive users. It criticized the approach of social media platforms towards crypto advertising, noting that some are still unable to enforce their standards effectively. Elon Musk’s assertion that BOB is a “scam crypto” led to the suspension of the memecoin-linked AI bot on Twitter, highlighting the turbulence and vulnerability of the market. This incident emphasizes the significant impact of social media on investment decisions and public sentiment. Regulators, platforms, and users must remain vigilant as the world of cryptocurrencies evolves to distinguish fact from fiction and provide a safer and more transparent environment for all participants.
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