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Crypto-influencers

Author

Listed:
  • Kenneth J. Merkley

    (Indiana University)

  • Joseph Pacelli

    (Harvard Business School)

  • Mark Piorkowski

    (Indiana University)

  • Brian Williams

    (Indiana University)

Abstract

This study examines the investment value of information provided by crypto-influencers, that is, social media influencers covering crypto assets on Twitter. We examine the returns associated with approximately 36,000 tweets issued by 180 of the most prominent crypto social media influencers covering over 1,600 crypto assets for the two years spanning through December 2022. Our primary results indicate that crypto-influencers’ tweets are initially associated with positive returns. However, these tweets are followed by significant negative longer-horizon returns, suggesting they generate minimal long-term investment value. These effects are most pronounced for tweets issued by crypto-influencers proclaiming to be crypto experts, for smaller cap crypto asset securities and for self-described experts with many Twitter followers. In an additional analysis, we use machine-learning methods to classify tweets and find that this pattern of results strengthens when the tweets have a more positive sentiment or relate to buy recommendations.

Suggested Citation

  • Kenneth J. Merkley & Joseph Pacelli & Mark Piorkowski & Brian Williams, 2024. "Crypto-influencers," Review of Accounting Studies, Springer, vol. 29(3), pages 2254-2297, September.
    • Handle: RePEc:spr:reaccs:v:29:y:2024:i:3:d:10.1007_s11142-024-09838-4
    DOI: 10.1007/s11142-024-09838-4
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    References listed on IDEAS

    as
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