76% of Memecoins Promoted by Influencers Are Dead: Study

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As a seasoned researcher who has witnessed the rise and fall of countless cryptocurrencies, I find the CoinWire study on memecoins both intriguing and disheartening. Having navigated through the volatile waters of blockchain for years, I’ve learned to approach these findings with a mixture of caution and skepticism.

A fresh analysis from CoinWire highlights an alarming pattern in the realm of meme coins, exposing that 3 out of every 4 Twitter opinion leaders endorse digital assets whose worth has plummeted significantly.

The study examined the effectiveness of approximately 1,500 meme-based cryptocurrencies promoted by 377 popular influencers. It was found that around two-thirds of these coins have little to no real value.

It’s startling to see that 86 out of every 100 memecoins promoted by influencers lose 90% of their worth within merely three months. To put it another way, after a month, an astounding 90% of these tokens experienced a 80% decrease in value. Investors frequently get deceived by glamorous promotions and end up facing significant financial losses.

It’s quite a long shot to expect significant profits from memecoins. In fact, only about 1 out of 100 influencers who promote a memecoin see it rise by 10 times its original value. Similarly, just around 3% of the promoted tokens actually reach such heights of success.

As a researcher delving into the fascinating world of memecoins, I’ve made an intriguing discovery: Influencers boasting larger followings are more likely to endorse underperforming memecoins. For instance, when influencers with over 200K followers promote a token, it often leads to substantial losses. Within a week, these promoted tokens yielded a disheartening 39% negative return.

Interestingly, influencers who had less than 50,000 followers actually saw somewhat superior outcomes. After a week, they reported a 25% profit rise, and this figure climbed to a 141% increase over a three-month period.

As investors suffer financial setbacks, influencers reap the benefits through monetary gains, averaging $399 per promotional tweet. Each tweet can potentially reach thousands of viewers, making it tempting for influencers to back doubtful tokens, even if their followers experience significant losses as a result.

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2024-11-22 15:00