Data truth: 2/3 of the KOLs have promoted meme coins that have gone to zero, and only 1% of the tokens have increased by 10 times
It is almost impossible to achieve a 10x return on Memecoin promoted by influencers.Author: CoinWire
Compiled 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 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" Meme coins
2/3 of the Meme coins promoted by influencers are "dead"
86% of the Meme coins promoted by influencers lost 90% of their value within 3 months
Only 1% of the Meme coins promoted by influencers achieved a 10x growth
Research Methodology
We screened 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 now "dead" Meme coins. In fact, 2/3 of the Meme coins 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 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 have almost never delivered on their promises:
One week after promotion, 80% of the Meme coins lost 70% of their value.
One month after promotion, 90% of the tokens further declined by 80%.
Three months after promotion, 86% of the Meme coins plummeted 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 volatility and high risk associated with Memecoins promoted by influencers. Data shows that most investors faced severe losses just weeks after investing.
Achieving 10x Returns 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 a Meme coin that achieved a 10x increase.
Only 3% of the Meme coins promoted by influencers achieved a 10x growth.
This indicates that despite the hype created by influencers, the chances of obtaining high returns through these promotions are extremely slim.
More Followers, Worse 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 as high as 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, 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 prioritize financial gain, overlooking 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 revenue calculator.
While investors often face losses, influencers can reap substantial financial rewards from promoting Memecoins. Data shows that an average promotional tweet can generate $399 in income for influencers, with nearly 15,000 views. This indicates that the motivation for influencers to promote Memecoins primarily stems from financial interests, and 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 suggests that influencers' promotional activities are more about their financial interests rather than the well-being 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, so we cannot obtain this data. Therefore, the actual situation may be even more severe than the research results indicate.
