A new comprehensive study has revealed an alarming trend in the cryptocurrency space: over three-quarters of Twitter influencers are promoting memecoins that end up becoming worthless, leaving investors with devastating losses.
The groundbreaking research analyzed 1,567 memecoins promoted by 377 Twitter influencers with followings of 10,000 or more. The results paint a sobering picture of the memecoin promotion landscape.
Key Findings Paint a Grim Picture
The data shows that 76% of influencers have promoted memecoins that are now considered "dead" - having lost 90% or more of their value. Even more concerning, two out of every three memecoins promoted by these influencers end up failing.
The performance metrics are particularly bleak:
- 80% of promoted memecoins lose 70% of value within one week
- 90% drop by 80% within one month
- 86% plummet by 90% or more within three months
The Elusive 10x Dream
Despite promises of massive returns, the study found that achieving substantial gains through influencer-promoted memecoins is nearly impossible. Only 1% of influencers have ever successfully promoted a coin that reached a 10x increase in value. Just 3% of all promoted memecoins ever achieve this milestone.
Bigger Isn't Better
Surprisingly, influencers with larger followings showed worse performance metrics. Those with over 200,000 followers generated 39% negative returns after one week and 89% losses after three months.
In contrast, smaller influencers with under 50,000 followers demonstrated better results - achieving 25% positive returns after one week and 141% gains after three months.
Following the Money
While investors face steep losses, influencers profit handsomely from promotions. The average promotional tweet earns influencers $399 and reaches approximately 15,000 viewers.
The Hidden Reality
The study notes that many promotional tweets have been deleted when coins performed poorly, suggesting the actual situation could be even worse than the data indicates.
The findings serve as a stark warning to investors about the risks of following influencer-promoted memecoins. With over three-quarters of promotions leading to failed tokens, the research demonstrates that these endorsements typically benefit influencers far more than their followers.