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 already 'dead,' and the vast majority of investors ultimately suffer significant losses. To unveil 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
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 experienced a 90% value drop 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 promote Memecoins. We then compiled a list of 1,567 Memecoins they promoted in 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 fallen by at least 90% compared to their initial promotion price as 'dead' Memecoins.
Most Twitter influencers promote 'dead' Memecoins
Research finds 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 influencer-driven projects 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 vastly different from the glamorous image portrayed by influencers. The 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 further declined in value by 80%.
Three months after promotion, 86% of Memecoins' values plummeted to 1/10 of their original value.
This data clearly shows that the 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 face severe losses within just a few weeks after investing.
It is almost impossible to achieve a 10-fold return through Memecoins promoted by influencers
Memecoins are attractive primarily due to their seemingly huge profit potential. However, the reality is quite different from expectations:
Only 1% of influencers have successfully promoted Memecoins that achieved a 10-fold increase.
Only 3% of influencers promoted Memecoins that achieved 10 times growth.
This indicates that despite the hype generated by influencer promotions, the likelihood of obtaining high returns through these promotions is minimal.
The more followers, the worse the promotion effect
Interestingly, the more followers an influencer has, the worse the performance of the Memecoins they promote:
Influencers with more than 200,000 followers had an average loss of 39% in the Memecoins they promoted after one week, with losses reaching as high as 89% after three months.
In contrast, smaller influencers with fewer than 50,000 followers showed 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 benefits and overlook the quality of the projects they promote.
Influencers profit from promoting Memecoins
To estimate the income influencers gain from promotional tweets, we used TweetHunter's Twitter earnings calculation tool.
Despite investors often facing losses, influencers can reap substantial financial rewards from promoting Memecoins. Data shows that an average promotional tweet can generate $399 in income for influencers and attract nearly 15,000 views. This indicates that the motivation for influencers to promote Memecoins primarily stems from financial interests; even if these tokens carry high risks, they can still profit while their audience may face losses.
Conclusion
The research data reveals a concerning reality: the influencer-led promotion of Memecoins is more harmful than beneficial for ordinary investors. The data shows that 76% of influencers have promoted 'dead' tokens, and the probability of achieving a 10-fold return with these tokens is extremely low. This indicates that influencer promotion is more about their own financial interests rather than considering the welfare of 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 should be noted that due to some influencers deleting promotional tweets that failed to yield positive results, we are unable to obtain this data. Therefore, the actual situation may be more severe than the research results indicate.
