Original title: Study: 76% of Twitter Influencers Promote Dead Memecoins
Original Author: CoinWire
Translation: Lawrence, Mars Finance
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 1500 tokens promoted by 377 Twitter influencers. Here are the results of the data analysis.
Main Findings
76% of Twitter influencers have promoted 'dead' Memecoins
2/3 of the Memecoins promoted by influencers are 'dead'
86% of the Memecoins promoted by influencers lost 90% of their value within three months
Only 1% of the Memecoins promoted by influencers achieved a 10x growth
Research Methodology
We screened 377 Twitter influencers with at least 10,000 followers who frequently promote Memecoins. We then compiled a list of 1567 Memecoins they promoted over the past three months.
Through Dune Analytics, we collected data on the prices of these tokens at their first promotion, current prices, and price changes one week, one month, and three months after promotion.
We define tokens that have fallen at least 90% 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, 2/3 of the Memecoins promoted by influencers have become worthless. This indicates that many projects driven by influencers are actually 'digging pits' for investors. These promotions often mislead inexperienced investors, causing them to blindly participate without understanding the risks.
The Real 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 rarely deliver on their promises:
One week after promotion, 80% of Memecoins lost 70% of their value.
One month after promotion, 90% of tokens further declined in value by 80%.
Three months after promotion, 86% of Memecoins plummeted to 1/10 of their original value.
These data clearly indicate that Memecoins promoted by influencers do not have 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 severe losses just weeks after investing.
Achieving a 10x return on Memecoins promoted by influencers is almost impossible
The appeal of Memecoins mainly lies in their seemingly huge profit potential. However, the reality is far from expectations:
Only 1% of influencers have successfully promoted a Memecoin that achieved a 10x increase.
Only 3% of Memecoins promoted by influencers achieved a 10x growth.
This indicates that despite the hype created by influencers, the likelihood of achieving high returns through these promotions is extremely low.
More followers, worse promotion results
Interestingly, the more followers influencers have, the worse the performance of the Memecoins they promote:
Influencers with over 200,000 followers saw their promoted Memecoins average a 39% loss after one week and a staggering 89% loss after three months.
In contrast, smaller influencers with fewer than 50,000 followers exhibited more positive performance with the Memecoins they promoted: an average gain of 25% after one week and cumulative gains of 141% after three months.
This suggests that smaller influencers may be more inclined to genuinely promote projects, while larger influencers may prioritize economic benefits 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 reap substantial economic rewards from promoting Memecoins. Data shows that an average promotional tweet can generate $399 in income for influencers and garner nearly 15,000 views. This suggests that the motivation behind influencers promoting Memecoins primarily stems from economic interests, even though these tokens may carry high risks, they can still profit while the audience may face losses.
Conclusion
The research data reveals a troubling reality: influencer-led Memecoin promotions do more harm than good for ordinary investors. Data shows that 76% of influencers have promoted 'dead' tokens, and the probability of achieving a 10x return through these tokens is extremely low. This indicates that the promotional activities of influencers are more for their economic benefit than for their fans. 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 some influencers have deleted promotional tweets that did not yield positive results, so we cannot obtain this data. Therefore, the actual situation may be more severe than the study indicates.
