Original author: CoinWire
Article compiled by: Deep Tide TechFlow
With the rise of the Memecoin craze, many Twitter influencers have packaged these tokens as quick-rich investment opportunities. However, our research reveals a sobering truth: most Memecoins are 'dead,' and the vast majority of investors ultimately suffer significant losses. To uncover the true face of the Memecoin world, we analyzed the performance of over 1,500 tokens promoted by 377 Twitter influencers. Here are the results of the data analysis.
Main Findings
76% of Twitter influencers have promoted 'dead' Memecoins
Two-thirds of the Memecoins promoted by influencers are 'dead'
86% of the Memecoins promoted by influencers plummeted in value by 90% within three months.
Only 1% of the Memecoins promoted by influencers achieved a tenfold increase.
Research Methodology
We screened 377 Twitter influencers with at least 10,000 followers who frequently promoted Memecoins. We then compiled a list of 1,567 Memecoins they promoted over the last three months.
Using Dune Analytics, we collected data on the initial promotion prices of these tokens, current prices, and price changes one week, one month, and three months after promotion.
We define tokens that have dropped at least 90% in value compared to their initial promotion price as 'dead' Memecoins.
Most Twitter influencers promote 'dead' Memecoins
Research found that 76% of Twitter influencers have promoted Memecoins that are now 'dead.' In fact, two-thirds of the Memecoins promoted by influencers have become worthless. This indicates that many projects driven by influencers are essentially 'digging pits' for investors. These promotions often mislead inexperienced investors, causing them to participate blindly without understanding the risks.
The real performance of Memecoins promoted by influencers
The actual performance of Memecoins is starkly different from the glamorous image portrayed by influencers. Data shows that these promotions have almost never fulfilled their promises:
One week after promotion, 80% of Memecoins lose 70% of their value.
One month after promotion, 90% of tokens see their value further drop by 80%.
Three months after promotion, 86% of Memecoins' values plunge to one-tenth of their original value.
These data clearly indicate that Memecoins promoted by influencers do not possess long-term investment value and may instead lead to significant losses for investors.
This phenomenon highlights the extreme instability and high risk associated with Memecoins promoted by influencers. Data shows that most investors experience significant losses within just a few weeks of investing.
It is nearly impossible to achieve tenfold returns through Memecoins promoted by influencers.
The allure of Memecoins primarily lies in their seemingly enormous profit potential. However, the reality is far from expectations:
Only 1% of influencers have successfully promoted Memecoins that achieved a tenfold increase.
Only 3% of the influencer-promoted Memecoins achieved a tenfold increase.
This indicates that, despite the hype generated by influencer marketing, the chances of achieving high returns through these promotions are extremely low.
The more followers, the worse the promotion effect
Interestingly, the more followers an influencer has, the worse the Memecoins they promote perform:
Influencers with over 200,000 followers see an average loss of 39% in the Memecoins they promote after one week, and losses can reach as high as 89% after three months.
In contrast, smaller influencers with fewer than 50,000 followers see more positive performance from the Memecoins they promote: an average gain of 25% after one week, and cumulative gains of up to 141% after three months.
This suggests that smaller influencers may be more inclined to genuinely promote projects, while larger influencers may prioritize financial gain over the quality of the projects they promote.
Influencers profit from Memecoin promotions
To estimate the income influencers earn from promoting tweets, we used TweetHunter's Twitter revenue calculator.
While investors often face losses, influencers can reap substantial financial rewards from Memecoin promotions. Data shows that each promotional tweet can bring in an average income of $399 for influencers and nearly 15,000 views. This indicates that the motivation behind influencer promotions of Memecoins primarily stems from financial interests; even though these tokens may carry high risks, they can still profit from them while the audience may face losses.
Conclusion
The research data reveals a concerning reality: influencer-led Memecoin promotions tend to do more harm than good for the average investor. Data shows that 76% of influencers have promoted 'dead' tokens, with the probability of achieving tenfold returns through these tokens being extremely low. This indicates that the promotional activities of influencers are often more for their own financial benefit rather than for the sake of their followers. Investors should remain vigilant and rationally assess the true value behind these promotions to 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 cannot obtain this data. Therefore, the actual situation may be more severe than what the research results indicate.
