Achieving a 10x return through influencer-promoted Memecoins is nearly impossible.
Author: CoinWire
Translation: 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 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 3 months.
Only 1% of the Memecoins promoted by influencers achieved a 10x increase.
Research Methodology
We selected 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.
Using Dune Analytics, we collected data on the initial promotion price, current price, and price changes one week, one month, and three months after promotion.
We defined tokens that have dropped at least 90% in current value compared to their initial promotion price as "dead" Memecoins.
Most Twitter Influencers Promote "Dead" Memecoins
The research found that 76% of Twitter influencers have promoted Memecoins that are now "dead." In fact, 2/3 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 Real Performance of Influencer-Promoted Memecoins
The actual performance of Memecoins starkly contrasts with the glamorous image portrayed by influencers. Data shows that these promotions almost never deliver on their promises:
One week after promotion, 80% of Memecoins lost 70% of their value.
One month after promotion, 90% of the tokens further declined by 80%.
Three months after promotion, 86% of Memecoins plummeted to 1/10 of their original value.
These data clearly indicate that influencer-promoted Memecoins do not possess long-term investment value and may instead lead to significant losses for investors.
This phenomenon highlights the extreme volatility and high risk associated with influencer-promoted Memecoins. Data shows that most investors encounter severe losses just weeks after investing.
Achieving a 10x Return through Influencer-Promoted Memecoins is Nearly Impossible
The allure of Memecoins primarily lies in their 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 realized a 10x growth.
This indicates that despite the hype generated by influencers, the likelihood of obtaining high returns through these promotions is minuscule.
The More Followers, the Worse the Promotion Performance
Interestingly, the more followers an influencer has, the worse the performance of the Memecoins they promote:
Influencers with over 200,000 followers saw their promoted Memecoins average a 39% loss after one week, with losses reaching 89% after three months.
In contrast, smaller influencers with fewer than 50,000 followers had a more positive performance for their promoted Memecoins: an average gain of 25% after one week, with cumulative gains of 141% after three months.
This suggests that smaller influencers may be more inclined to genuinely promote projects, while larger influencers may prioritize financial gain, 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 revenue calculator.
While investors often face losses, influencers can reap substantial financial rewards from 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 for influencers to promote Memecoins primarily stems from financial interests, even if these tokens carry high risks, they can still profit while their audience may face losses.
Conclusion
The research data reveals a concerning 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 the promotional behavior of influencers is more about their own financial interests rather than considering 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 even more severe than the research results indicate.
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