Data Truth: Over 65% of KOLs' recommended Meme coins have gone to zero, with only 1% seeing a 10x increase
Original Article Title: Study: 76% of Twitter Influencers Promote Dead Memecoins
Original Source: CoinWire
Original Translation: DeepTech TechFlow
With the rise of the Memecoin craze, many Twitter influencers have portrayed these tokens as a get-rich-quick investment opportunity. However, our study has revealed a sobering truth: the majority of Memecoins are already "dead," and most investors have ultimately suffered significant losses. To uncover the true nature of the Memecoin world, we analyzed the performance of over 1,500 tokens promoted by 377 Twitter influencers. Below are the results of the data analysis.
Key Findings
1. 76% of Twitter Influencers Have Promoted a "Dead" Memecoin
2. Two-thirds of the Memecoins promoted by influencers are considered "dead"
3. 86% of influencer-promoted Memecoins experienced a 90% price drop within 3 months
4. Only 1% of influencer-promoted Memecoins achieved a 10x price increase
Research Methodology
We identified 377 Twitter influencers with a following of at least 10,000 who frequently promote Memecoins. Subsequently, we compiled a list of 1,567 Memecoins they had promoted in the past three months.
Using Dune Analytics, we collected data on the initial price, current price, as well as price changes one week, one month, and three months after the initial promotion of these tokens.
We defined tokens that had dropped at least 90% in value compared to their initial promotion price as "dead" Memecoins.
Most Twitter Influencers Promote "Dead" Memecoins
The research found that 76% of Twitter influencers have promoted Memecoins that are now considered "dead." In fact, two-thirds of the Memecoins promoted by influencers have become practically worthless. This indicates that a significant number of projects driven by influencers are essentially setting traps for investors. These promotions often mislead inexperienced investors, leading them to blindly participate without understanding the risks.
The Real Performance of Influencer-promoted Memecoins
The actual performance of Memecoins has been far from the glamorous image often portrayed through influencer promotion. Data shows that these promotions have hardly ever delivered on their promises:
· One week after promotion, 80% of Memecoin value plummeted by 70%
· One month after promotion, 90% of the tokens further dropped by 80%
· Three months after promotion, 86% of Memecoin value crashed to 1/10 of its original value
This data clearly indicates that influencer-promoted Memecoins do not hold long-term investment value and may instead lead to significant losses for investors.
This phenomenon highlights the extreme volatility and high risk associated with influencer-promoted Memecoins. Data shows that the majority of investors faced substantial losses within just a few weeks of investing their funds.
Achieving 10x Returns through Influencer-promoted Memecoins Is Nearly Impossible
Memecoins have been attractive mainly due to their perceived high return potential. However, the reality has been far from expectations:
· Only 1% of influencers have successfully promoted Memecoins that achieved a 10x increase.
· Just 3% of influencer-promoted Memecoins have seen a 10x growth.
This indicates that despite the hype generated by influencer promotion, the likelihood of receiving substantial returns through these promotions is very slim.
The More Fans, The Worse the Promotion Effect
Interestingly, the more followers an influencer has, the worse the performance of the Memecoin they promote:
· Influencers with over 200,000 followers saw the Memecoins they promoted lose an average of 39% in value after one week, with a staggering 89% loss after three months.
· In contrast, smaller influencers with fewer than 50,000 followers had more positive outcomes with the Memecoins they promoted: an average gain of 25% after one week and a cumulative gain of up to 141% after three months.
This indicates that small-scale influencers may be more inclined to authentically promote a project, while large-scale influencers may prioritize financial gain, overlooking the quality of the projects they promote.
Influencers Profiting from Memecoin Promotion
To estimate the income influencers generate from promotional tweets, we utilized TweetHunter's Twitter revenue calculation tool.
Despite investors often facing losses, influencers can earn lucrative economic returns through Memecoin promotion. The data shows that on average, each promotional tweet can bring influencers $399 in income and receive nearly 15,000 views. This suggests that influencers' motivation to promote Memecoins primarily stems from financial gain. Even though these tokens may pose high risks, influencers can still profit from them, while the audience may face losses.
Conclusion
Research data reveals a concerning reality: influencer-led Memecoin promotion is more of a disadvantage than an advantage for ordinary investors. The data shows that 76% of influencers have promoted "dead" tokens, and the probability of achieving a 10x return through these tokens is very low. This indicates that influencers' promotional behavior is more geared towards their financial gain rather than the well-being of their followers. Investors should remain vigilant, rationally assess the true value behind these promotions, and avoid making blind decisions due to social media hype.
It is important to note that since some influencers have deleted promotional tweets that did not yield positive results, we were unable to access this data. Therefore, the actual situation may be more severe than what the research results indicate.
