Original author: CoinWire
Translated 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 uncover the true nature of the Memecoin world, we analyzed the performance of over 1500 tokens promoted by 377 Twitter influencers. Below 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 lost 90% of their value within three months
Only 1% of the Memecoins promoted by influencers achieved 10 times 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 promoted by them 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 dropped at least 90% in value compared to their initial promotion price as 'dead' Memecoins.
Most Twitter influencers have promoted 'dead' Memecoins
The research found that 76% of Twitter influencers have promoted 'dead' Memecoins. In fact, 2/3 of the Memecoins promoted by influencers have already 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 participate blindly without understanding the risks.
The actual performance of influencers promoting Memecoins
The actual performance of Memecoins is vastly different from the glamorous image portrayed by influencers. Data shows that these promotions have almost never 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 plummeted in value 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 Memecoins promoted by influencers. Data shows that most investors encounter significant losses just weeks after investing.
It is almost impossible to achieve 10 times returns through Memecoins promoted by influencers.
Memecoins are attractive 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 by 10 times.
Only 3% of influencers promoted Memecoins that achieved 10 times growth.
This indicates that, despite the significant hype generated by influencers, the likelihood of achieving high returns through these promotions is minuscule.
More followers, worse promotion results
Interestingly, the more followers influencers have, the worse the Memecoins they promote perform:
Influencers with over 200,000 followers experience an average loss of 39% in the Memecoins they promote one week later, with losses reaching as high as 89% after three months.
In contrast, smaller influencers with fewer than 50,000 followers show a more positive performance in the Memecoins they promote: 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, neglecting 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 earnings calculator.
Despite the fact that investors often face losses, influencers can obtain substantial economic returns through Memecoin promotions. Data shows that each promotional tweet can generate an average income of $399 for influencers, with nearly 15,000 views. This indicates that the motivation behind influencer promotions of Memecoins mainly stems from economic interests; even if these tokens 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 harmful than beneficial for average investors. The data shows that 76% of influencers have promoted 'dead' tokens, and the probability of achieving 10 times returns through these tokens is extremely low. This indicates that influencer promotions are more for their own economic benefits rather than for their fans. Investors should remain vigilant and rationally assess the real value behind these promotions to avoid making blind decisions due to social media hype.
It is important to note that due to some influencers deleting promotional tweets that did not yield positive results, we are unable to access these data. Therefore, the actual situation may be more severe than the research results suggest.
