Shocking Truth: 76% of Crypto Influencers Pushed Failed Memecoins!
Ever wondered what’s lurking behind the hype of memecoins and the flashy endorsements from social media influencers on X (formerly Twitter)? A recent report has surfaced that unveils a troubling truth about a staggering failure rate in this crypto realm.
The Shocking Truth: Most Memecoins Are Worthless
According to a meticulous study by Coinwire, a jaw-dropping two-thirds of cryptocurrency influencers on X have put their weight behind memecoins that have now become utterly worthless. Yes, you heard that right. While these influencers promise the moon, the reality is often a harsh crash landing.
In fact, the research revealed that only a minuscule fraction—just 1%—of these memecoin promotions ever saw a tenfold increase in value. That’s a dismal success rate considering the frenzy these influencers generate around these digital coins!
Coinwire’s findings further highlight that over 76% of these influencers had a hand in promoting what are now known as “dead tokens.” An industry analyst noted that this trend clearly illustrates the darker side of the memecoin phenomenon.
The cryptocurrency news platform scrutinized more than 1,500 memecoin promotions from 377 influencers, diving deep into their performance metrics.
Paid KOLs: How Twitter Influencers Promote Dead Tokens and Profit While You Lose
1/ The hype around memecoins hides a harsh reality: 76% of influencers promote dead tokens, and 86% of memecoins lose 90% of their value in just 3 months.
Let’s dive into the data. 🧵
2/ It… pic.twitter.com/CCy6Tnc7pt
— Keto (@keto_studio) November 25, 2024
Quality Over Quantity: The Small Influencer Advantage
Interestingly, Coinwire found that smaller influencers tend to deliver better results than their larger counterparts. These “micro-influencers” often engage in more sincere promotions, leading to higher returns.
The study revealed that influencers with fewer than 50,000 followers enjoyed remarkable outcomes, achieving a 25% positive return just one week after their promotions. And over three months? That figure skyrocketed to more than 141%!
Conversely, influencers boasting large followings have seen staggeringly poor promotion results. Coinwire noted that those with over 200,000 followers faced dismal outcomes, reporting negative returns of 39% after one week, escalating to a staggering 89% after three months.
According to a Coinwire research report, 76% of cryptocurrency influencers on the X have promoted Memecoins that have now returned to zero, only 1% of the promoted Memecoins have achieved a tenfold increase, and 80% of the promoted Memecoins have plummeted by 70% in a week.… pic.twitter.com/EWmmymAS2N
— Wu Blockchain (@WuBlockchain) November 25, 2024
Researchers attribute the disappointing performance of larger influencers to their focus on financial incentives rather than the genuine quality of the projects they endorse. Coinwire disclosed that these big-name influencers rake in an average of $399 per promotional tweet for posts reaching at least 15,000 views, pocketing cash while memecoin investors suffer significant losses.
As of today, the market cap of cryptocurrencies reached $3.22 trillion. Chart: TradingView
This raises a critical question: What responsibility do influencers have when it comes to promoting digital tokens? All too often, it seems they lead investors astray.
The Downfall of Influencer-Driven Memecoins
Coinwire’s research indicates a staggering 86% of memecoins promoted by influencers experienced a thrilling plunge, losing 90% of their value within just three months.
After a week, 80% of these influencer-endorsed tokens dropped in value by 70%. One month in, 90% of them lost a whopping 80% of their value. And, shockingly, 86% of promoted memecoins faced an extraordinary tenfold drop over three months.
According to the report, achieving that elusive tenfold gain through influencer-backed memecoin promotions is nearly a pipe dream, with only 1% of them hitting that mark.
Featured image from DALL-E, chart from TradingView
