Author: CoinWire
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 now '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.
Main Findings
76% of Twitter influencers have promoted 'dead' Memecoins.
Two-thirds of the Memecoins promoted by influencers are now 'dead'.
86% of the Memecoins promoted by influencers saw their value plummet by 90% within 3 months.
Only 1% of the Memecoins promoted by influencers achieved a 10-fold 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 past three months.
Through Dune Analytics, we collected the prices of these tokens at the time of their initial promotion, current prices, and price change data one week, one month, and three months after promotion.
We define tokens whose current value has dropped by 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, 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 true performance of Memecoins promoted by influencers.
The actual performance of Memecoins is vastly different from the glamorous image promoted by influencers. Data shows that these promotions have rarely delivered on their promises:
One week after promotion, 80% of Memecoins lost 70% of their value.
One month after promotion, 90% of tokens further declined by 80% in value.
Three months after promotion, 86% of Memecoins saw their value plummet to one-tenth 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 encounter severe losses just weeks after investing their funds.
It is almost impossible to achieve a 10-fold return through Memecoins promoted by influencers.
Memecoins are appealing primarily due to their seemingly enormous profit potential. However, the reality is far from expectations:
Only 1% of influencers have successfully promoted Memecoins that achieved a 10-fold increase.
Only 3% of the Memecoins promoted by influencers achieved a 10-fold increase.
This indicates that despite the hype generated by influencers' promotions, the likelihood of achieving high returns through these promotions is almost negligible.
More followers lead to worse promotion results.
Interestingly, the more followers an influencer has, the worse the performance of the Memecoins they promote:
Influencers with over 200,000 followers have seen an average loss of 39% on the Memecoins they promoted one week later, and losses reach as much as 89% after three months.
In contrast, smaller influencers with fewer than 50,000 followers have seen 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 focus more on economic benefits and neglect the quality of the promoted projects.
Influencers profit from promoting Memecoins.
To estimate the income influencers earned from promotional tweets, we used the Twitter revenue calculator tool from TweetHunter.
Although investors often face losses, influencers can earn substantial financial returns through the promotion of Memecoins. Data shows that an average promoted tweet can generate $399 in income for influencers and receive nearly 15,000 views. This indicates that the motivation for influencers to promote Memecoins primarily stems from economic benefits, even though these tokens may carry high risks, they can still profit from them while the audience may face losses.
Conclusion
Research data reveals a concerning reality: influencer-led Memecoin promotions are more detrimental than beneficial for ordinary investors. Data shows that 76% of influencers have promoted 'dead' tokens, and the probability of achieving a 10-fold return through these tokens is extremely low. This indicates that the promotional behaviors of influencers are more for their own economic benefits 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 worth noting that because some influencers have deleted promotional tweets that did not yield positive results, we are unable to obtain this data. Therefore, the actual situation may be more severe than what the research results show.
