Auction for first social media analysis platform closes at £120,000
A two-week online auction for DCM Capital, the firm behind social media sentiment platform DCM Dealer, comes to a close at £120,000 ($186,000).
DCM Dealer, launched in January, analyzes Twitter and Facebook posts to measure public opinion of certain stocks, allowing traders to determine market mood. The online auction, which ran from Monday, February 4, started at just £1 and closed at 10 am today. Bids were not legally binding, according to the company's auction prospectus.
A prospectus on the company’s auction page lists a guide price of almost £5 mn and states that the winning bidder takes all issued share capital, intellectual property, trademarks, branding, domain names, licenses, software and technology, including a custom-built trading platform for spread betting and contracts for difference.
DCM Capital launched a hedge fund using social media sentiment in 2011, which closed one month later. Its new spread-betting platform, which gauges market mood for stocks, indexes and commodities, began operating last month using an algorithm developed by academics in 2010 that claims to have 87.6 percent accuracy in predicting daily changes in the Dow Jones Industrial Average.
‘Twelve months ago we put a team together to build the world’s first social media investor sentiment analysis trading platform,’ states DCM Capital’s website. The company, which was launched in 2008, says it developed DCM Dealer on a £350,000 budget over the past year – far more than the £120,000 closing bid. ‘Now we move onto our next project, to successfully use social media to publicly auction our company and innovative technology to the highest bidder,’ the website adds.
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