Written by: CoinWire
Compiled by: Deep Tide TechFlow
With the rise of the Memecoin craze, many Twitter influencers are packaging 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 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 lost 90% of their value within three months
Only 1% of the Memecoins promoted by influencers achieved a tenfold increase
Research Methodology
We screened 377 Twitter influencers with at least 10,000 followers who frequently promote Memecoins. Subsequently, we 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 declined at least 90% from their initial promotion price as 'dead' Memecoins.
Most Twitter influencers promote 'dead' Memecoins
The study found that 76% of Twitter influencers had previously 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 actually 'digging pits' for investors. These promotions often mislead inexperienced investors, causing them to blindly participate without understanding the risks.
The true performance of Memecoins promoted by influencers
The actual performance of Memecoins is vastly different from the polished image presented by influencers. Data shows that these promotions have rarely delivered on their promises:
One week after promotion, 80% of Memecoins lose 70% of their value.
One month after promotion, 90% of tokens further drop 80% in value.
Three months after promotion, 86% of Memecoins plummet 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 severe losses within just a few weeks of investing.
Achieving a tenfold return through Memecoins promoted by influencers is nearly impossible
The allure of Memecoins mainly lies in their seemingly huge profit potential. However, the reality is far from expectations:
Only 1% of influencers have successfully promoted Memecoins that achieved a tenfold increase.
Only 3% of influencers promoted Memecoins that achieved a tenfold increase.
This indicates that although influencer hype creates a lot of buzz, the likelihood of achieving high returns through these promotions is minimal.
The more followers, the worse the promotion effect
Interestingly, the more followers influencers have, the worse the performance of the Memecoins they promote:
Influencers with over 200,000 followers see the Memecoins they promote incur an average loss of 39% after one week, and losses reach as high as 89% after three months.
Small influencers with fewer than 50,000 followers are more actively promoting Memecoins: an average return of 25% after one week and a cumulative return of 141% after three months.
This suggests that smaller influencers may be more inclined to genuinely promote projects, while larger influencers may prioritize economic interests 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 earnings calculator.
Although investors often face losses, influencers can gain substantial financial returns from promoting Memecoins. Data shows that each promotional tweet can generate an average income of $399 for influencers and almost 15,000 views. This indicates that the motivation for influencers to promote 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
Research data reveals a concerning reality: influencer-led Memecoin promotions are more harmful than beneficial for ordinary investors. Data indicates that 76% of influencers have promoted 'dead' tokens, and the probability of achieving a tenfold return through these tokens is extremely low. This suggests that the promotional actions of influencers are more for their economic benefit rather than for their fans' sake. Investors should remain vigilant and rationally assess the true value behind these promotions to avoid making blind decisions due to social media hype.
It should be noted that since 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 indicate.
