A recent study by Coinglass analyzing the performance of memecoins promoted by Twitter influencers has revealed a harsh reality: the majority of these tokens ultimately became worthless.

A recent analysis by Coinglass has revealed some eye-opening insights into the performance of meme coins promoted by influencers on social media. The study examined 1,567 promoted by 377 influencers over the past three months, using data sourced from Dune Analytics. Each influencer had a following of 10,000 or more. Here’s what the results showed:
1. 76% of the meme coins promoted by influencers are now worthless.
2. 80% of these tokens lost over 70% of their value in the last seven days alone.
3. Only 1% of the promoted meme coins achieved the so-called "10x gain" myth.
4. Just 3% of influencers promoted coins that saw a ten-fold increase in value.
5. The downward trend is staggering:
80% of these meme coins dropped by over 70% in a week.90% lost 80% of their value in a month.86% suffered a 10x decrease in value over three months.

Key Takeaways:
Achieving substantial gains (e.g., a 10x return) with influencer-promoted meme coins is almost impossible. Only 1% of influencers promote coins that reach these heights, and only 3% of their shilled tokens ever achieve this level of success.A significant portion of these promotions leads to financial losses for investors, many of whom see their investments nosedive within weeks.

Who Benefits?
While investors often face losses, influencers reap substantial profits from these promotions. On average:
Influencers earned $399 per promotional post.Each post garnered at least 15,000 views.

Interestingly, the influencer’s follower count played a role in the performance of the promoted meme coins:
Influencers with 200,000+ followers were more likely to promote poorly performing coins.Those with less than 50,000 followers had a better track record, with their promoted coins yielding an average return of 141% over three months.

A Deeper Concern
The study also noted a potential underestimation of the problem, as researchers could not account for deleted promotional posts. These posts might have been removed to obscure poor performance or fraudulent activity.
SOURCE: Cryptopolitan

Final Thoughts
Despite the bleak data, I still believe meme coins can offer lucrative opportunities in the crypto space—if approached wisely. Always DYOR (Do Your Own Research) and invest only what you’re willing to lose.

If this post resonates with you, hit the follow button! My next post will explore the key factors to check before investing in meme coins.

Cheers to smarter investments and greater gains!

#ozuru