With the rise of the Memecoin craze, many Twitter influencers have packaged these tokens as quick riches 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.
Two-thirds of the Memecoins promoted by influencers are 'dead'.
86% of the Memecoins promoted by influencers lost 90% of their value within 3 months.
Only 1% of the Memecoins promoted by influencers achieved a 10-fold increase.
Research Methods
We filtered 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 prices of these tokens at their initial promotion, current prices, and price changes one week, one month, and three months after promotion.
We define tokens that have fallen at least 90% from their initial promotional 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 influencer-promoted Memecoins.
The actual performance of Memecoins is vastly different from the glamorous image promoted by influencers. Data shows that these promotions have almost never delivered on their promises:
One week after promotion, 80% of Memecoins have lost 70% of their value.
One month after promotion, 90% of the tokens' values further declined by 80%.
Three months after promotion, 86% of Memecoins' values plummeted to 1/10 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 influencer-promoted Memecoins. Data shows that most investors face severe losses within just a few weeks after investing.
Achieving a 10-fold return through Memecoins promoted by influencers is nearly impossible.
Memecoins are appealing mainly because of their seemingly huge profit potential. However, the actual situation is far from expectations:
Only 1% of influencers have successfully promoted a Memecoin that increased by 10 times.
Only 3% of the Memecoins promoted by influencers achieved a 10-fold increase.
This indicates that despite the hype generated by influencers, the likelihood of achieving high returns through these promotions is minuscule.
The more followers, the worse the promotion effect.
Interestingly, the more followers influencers have, the worse their promoted Memecoins perform:
Influencers with more than 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 had more positive outcomes for their promoted Memecoins: an average return of 25% after one week and cumulative returns of up to 141% after three months.
This indicates that smaller influencers may be more inclined to genuinely promote projects, while larger influencers may focus more on financial benefits, neglecting the quality of the projects they promote.
Influencers profit from Memecoin promotions.
To estimate the income influencers earn from promotional tweets, we used the Twitter revenue calculator tool from TweetHunter.
Although investors often face losses, influencers can earn substantial economic returns through Memecoin promotions. Data shows that on average, each 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 benefits, even if these tokens may carry higher risks, they can still profit while the audience may face losses.
Conclusion
Research data reveals a concerning reality: influencer-led Memecoin promotions are more detrimental than beneficial for average 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 influencers' promotional activities are more for their own financial interests rather than for the benefit 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 some influencers have deleted promotional tweets that did not yield positive results, so we cannot obtain this data. Therefore, the actual situation may be worse than what the research indicates.