76% of Twitter Influencers Promote 'Dead' Meme Coins: Study Reveals Who's Really Winning
November 22, 2024
Amidst the hype around meme coins, many social media influencers are promoting them as quick investment opportunities. But a new study from coinwire reveals a shocking truth: most of these touted coins are actually “dead.” And most investors are suffering huge losses.
By analyzing the performance of over 1,500 meme coins promoted by 377 Twitter influencers, the reality of these promotions was highlighted, and the results were not in favor of investors. Click here for advertising services or press releases for the crypto project
The study revealed that 76% of Twitter influencers promote dead meme coins. It was found that two out of three meme coins promoted by influencers end up being almost worthless.
Data shows that 86% of promoted meme coins lost 90% of their value in just three months. In contrast, only 1% of influencers managed to promote coins that increased in value by 10x.
The study team identified 377 Twitter influencers with at least 10,000 followers who regularly promote meme coins. Data on 1,567 meme coins promoted over the past three months was collected using the Dune Analytics platform. Their prices were analyzed from the start of the promotion and after one week, one month, and three months.
Meme Coins Performance After Promotion: Reaching Big Gains Is Nearly Impossible
Data suggests that the performance of influencer-promoted meme coins is far from the rosy picture they are portraying. After a week of promotion, 80% of these coins lost 70% of their value. After a month, 90% of coins fell by 80%. After three months, 86% of coins saw their value drop by up to 10 times.
These figures confirm the extreme instability and volatility of this type of digital currency. Most investors end up with huge losses within just a few weeks.
While the potential for huge gains is one of the biggest drivers for investing in meme coins, data shows that this potential is very rare. Only 1% of influencers promoted a meme coin that grew tenfold in value. And only 3% of the coins they promoted achieved this growth.
The study also showed that influencers with larger followings had worse meme coin promotion results. Influencers with over 200,000 followers had 39% negative performance after a week of promotion, and 89% after three months. In contrast, influencers with fewer than 50,000 followers had 25% positive performance after a week, and 141% positive performance after three months.
Despite the losses to investors, influencers benefit financially from promotions. On average, an influencer makes about $399 per promoted tweet, and each tweet gets about 15,000 views.
The data reveals a disturbing truth: Influencer promotion of meme coins is often detrimental to the average investor. With 76% of influencers promoting dead coins and only a small percentage making significant gains, these promotions appear to serve the interests of the influencers more than their followers.
Therefore, investors should be cautious and question the true value behind these promotions, and avoid making investment decisions based solely on media hype.