Original title: Study: 76% of Twitter Influencers Promote Dead Memecoins.
Original source: CoinWire
Original translation: 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 nature 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.
Key findings
1. 76% of Twitter influencers have promoted 'dead' Memecoins.
2. Two-thirds of the Memecoins promoted by influencers are 'dead'.
3.86% of the Memecoins promoted by influencers saw their value plummet by 90% within 3 months.
4. Only 1% of the Memecoins promoted by influencers achieved tenfold growth.
Research methodology.
We screened 377 Twitter influencers with at least 10,000 followers who frequently promote Memecoins. We then compiled a list of 1,567 Memecoins they promoted over the past three months.
Through 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.
The study 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 pushed by influencers are effectively 'digging pits' for investors. These promotions often mislead inexperienced investors into participating blindly without understanding the risks.
The true performance of Memecoins promoted by influencers.
The actual performance of Memecoins is vastly different from the glamorous image portrayed by influencers. Data shows that these promotions almost never deliver on their promises:
· One week after promotion, 80% of Memecoins lost 70% of their value.
· One month after promotion, 90% of the tokens' value further declined by 80%.
· Three months after promotion, 86% of Memecoins' value plummeted to one-tenth of the original.
These data clearly indicate that Memecoins promoted by influencers lack 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 face significant losses just weeks after investing.
Achieving tenfold returns through Memecoins promoted by influencers is nearly impossible.
Memecoins are appealing mainly due to their seemingly enormous profit potential. However, the reality is far from expectations:
· Only 1% of influencers have successfully promoted Memecoins that increased tenfold.
· Only 3% of the Memecoins promoted by influencers achieved a tenfold increase.
This indicates that, despite the hype created by influencers, the likelihood of achieving high returns through these promotions is negligible.
The more followers, the worse the promotion results.
Interestingly, the more followers influencers have, the worse the performance of the Memecoins they promote:
· Influencers with over 200,000 followers saw the Memecoins they promoted average a 39% loss after one week, and losses reached 89% after three months.
· Smaller influencers with fewer than 50,000 followers had a more positive performance with the Memecoins they promoted: 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 interests and overlook the quality of the projects they promote.
Influencers profit from promoting Memecoins.
To estimate the income influencers earn from promotional tweets, we used TweetHunter's Twitter revenue calculator.
Although investors often face losses, influencers can earn substantial financial returns from promoting Memecoins. Data shows that each promotional tweet can generate an average income of $399 for influencers, attracting nearly 15,000 views. This indicates that the motivation for influencers to promote Memecoins is primarily financial, even if these tokens carry higher risks; they can still profit while their audience may face losses.
Conclusion
The research data reveals a concerning reality: influencer-led Memecoin promotions are more harmful than beneficial to ordinary investors. Data shows that 76% of influencers have promoted 'dead' tokens, while the probability of achieving tenfold returns from these tokens is extremely low. This indicates that influencers' promotional activities are more about their financial gain than the welfare 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 we could not obtain data on some promotions that influencers deleted due to lack of positive results. Therefore, the actual situation may be worse than the study indicates.
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