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Active user totals and engagement numbers are still a big driver in valuations so the incentives still align with not cracking down too hard (as long as legitim
by slg 7y ago
Active user totals and engagement numbers are still a big driver in valuations so the incentives still align with not cracking down too hard (as long as legitimate users aren't pushed away by the inauthentic content).
- jimkleiber 7y agoThis aspect has puzzled me deeply. I imagine the following scenario: I'm the CEO of a social network trying to raise a new round of funding. I go to investors and say that we have 100M users on the platform and growing by 10M users per month. The investors like these numbers and decide to invest. A few years later, the investors find out that when I said 100M users, I actually meant 50M real human users and 50M bot users. When I said growing by 10M users per month, I actually meant by 5M real human users and 5M bot users per month. At what point does this become criminal fraud?
- mc32 7y agoAn investor should ask the hard questions like you know, how many of them are bots? It’s not hard to ask.