Article source: Shenchao TechFlow
Written by: CoinWire
Translation: Shenchao TechFlow
With the rise of the Memecoin craze, many Twitter influencers 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 10x growth
Research methods
We filtered 377 Twitter influencers with at least 10,000 followers who frequently promoted Memecoins. We then compiled a list of 1,567 Memecoins promoted by them in the past three months.
Using Dune Analytics, we collected the prices of these tokens at the time of their first promotion, current prices, and price change data one week, one month, and three months after the promotion.
We define tokens that have dropped at least 90% from their initial promotional price as 'dead' Memecoins.
Most Twitter influencers promote 'dead' Memecoins
Research found that 76% of Twitter influencers have previously promoted now 'dead' Memecoins. In fact, two-thirds 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 blindly participate without understanding the risks.
The true performance of Memecoins promoted by influencers
The actual performance of Memecoin 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 Memecoin lost 70% of its value.
One month after promotion, 90% of tokens further dropped in value by 80%.
Three months after promotion, 86% of Memecoin value plummeted to 1/10 of its 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 face severe losses just weeks after investing.
Achieving a 10x return through Memecoins promoted by influencers is nearly impossible
The appeal of Memecoin primarily lies in its seemingly enormous profit potential. However, the reality is far from expectations:
Only 1% of influencers have successfully promoted Memecoins that achieved a 10x increase.
Only 3% of the Memecoins promoted by influencers achieved a 10x growth.
This indicates that while influencer promotions generate significant hype, the likelihood of achieving high returns through these promotions is extremely low.
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 saw an average loss of 39% in the Memecoins they promoted after one week, with losses reaching up to 89% after three months.
In contrast, smaller influencers with fewer than 50,000 followers tend to have more positive performance with the Memecoins they promote: an average gain of 25% after one week, and cumulative gains of up to 141% after three months.
This indicates that smaller influencers may be more inclined to genuinely promote projects, while larger influencers may prioritize economic 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 TweetHunter's Twitter earnings calculator.
Although investors often face losses, influencers can reap substantial financial rewards through Memecoin promotions. Data shows that the average promotional tweet can generate $399 in income for influencers, garnering nearly 15,000 views. This indicates that the motivation for influencers to promote Memecoins primarily stems from financial interests, allowing them to profit even if these tokens carry high risks, while the audience may suffer losses.
Conclusion
The research data reveals a worrying reality: Influencer-led Memecoin promotions are more harmful than beneficial for ordinary investors. Data shows that 76% of influencers have promoted 'dead' tokens, and the probability of achieving a 10x return through these tokens is extremely low. This indicates that influencers' promotional activities are more for their own financial gain rather than for the benefit of their followers. Investors should remain vigilant, rationally assess the true value behind these promotions, and 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, making it impossible for us to obtain this data. Therefore, the actual situation may be more severe than what the research results indicate.
