Data Truth: 2/3 of the Meme Coins Promoted by KOLs Have Crashed to Zero, Only 1% of Tokens Surged 10x
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Data Truth: 2/3 of the Meme Coins Promoted by KOLs Have Crashed to Zero, Only 1% of Tokens Surged 10x
It's almost impossible to achieve a 10x return on a Memecoin promoted by influencers.
Navigating Web3 tides with focused insightsAuthor: CoinWire
Translation: TechFlow
As the Memecoin craze grows, many Twitter influencers are packaging these tokens as quick-rich investment opportunities. However, our research reveals an alarming truth: most Memecoins have already "died," and the vast majority of investors end up suffering significant losses. To uncover the real state of the Memecoin world, we analyzed the performance of over 1,500 tokens promoted by 377 Twitter influencers. Below are the findings from our data analysis.
Main Findings
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76% of Twitter influencers have promoted “dead” Memecoins
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Two-thirds of the Memecoins promoted by influencers are now “dead”
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86% of influencer-promoted Memecoins lost 90% of their value within three months
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Only 1% of influencer-promoted Memecoins achieved a 10x return
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 each token’s price at the time of initial promotion, its current price, and its price changes one week, one month, and three months after promotion.
We defined a “dead” Memecoin as one whose current value has dropped by at least 90% compared to its initial promotional price.
Most Twitter Influencers Promote “Dead” Memecoins
Our research found that 76% of Twitter influencers have promoted Memecoins that are now “dead.” In fact, two-thirds of all Memecoins promoted by influencers have become virtually worthless. This indicates that a large number of influencer-driven projects are essentially setting traps for investors. These promotions often mislead inexperienced investors into participating blindly without understanding the risks involved.
The Real Performance of Influencer-Promoted Memecoins
The actual performance of Memecoins starkly contrasts with the glamorous image portrayed by influencers. The data shows these promotions almost never deliver on their promises:
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One week after promotion, 80% of Memecoins lose 70% of their value.
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One month after promotion, 90% of the tokens further decline by 80%.
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Three months after promotion, 86% of Memecoins plummet to just 10% of their original value.
This clearly demonstrates that influencer-promoted Memecoins lack long-term investment value and may instead lead to substantial losses for investors.
This phenomenon highlights the extreme volatility and high risk associated with influencer-promoted Memecoins. Data shows that most investors suffer severe losses within just a few weeks of investing.
Getting a 10x Return from Influencer-Promoted Memecoins Is Nearly Impossible
Memecoins are attractive primarily due to their perceived potential for massive gains. However, reality falls far short of expectations:
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Only 1% of influencers have successfully promoted a Memecoin that achieved a 10x increase.
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Only 3% of the Memecoins promoted by influencers reached a 10x gain.
This suggests that despite the hype generated by influencers, the likelihood of achieving high returns through these promotions is extremely low.
The More Followers, the Worse the Performance
Interestingly, the larger an influencer’s follower count, the worse the performance of the Memecoins they promote:
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Influencers with over 200,000 followers saw their promoted Memecoins lose an average of 39% within one week and a staggering 89% within three months.
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In contrast, smaller influencers with fewer than 50,000 followers achieved more positive results: their promoted Memecoins gained an average of 25% in the first week and accumulated gains of up to 141% over three months.
This suggests that smaller influencers may be more inclined to genuinely support projects, while larger influencers may prioritize financial gain over project quality.
Influencers Profit from Memecoin Promotions
To estimate how much influencers earn from promotional tweets, we used TweetHunter’s Twitter earnings calculator.
While investors often face losses, influencers can reap substantial financial rewards from promoting Memecoins. Data shows that on average, each promotional tweet earns an influencer $399 and receives nearly 15,000 views. This indicates that influencers are primarily motivated by economic incentives—even when promoting high-risk tokens—and profit regardless of whether their audience suffers losses.
Conclusion
The data reveals a concerning reality: influencer-driven Memecoin promotions are more harmful than beneficial to ordinary investors. Our findings show that 76% of influencers have promoted “dead” tokens, and the chance of achieving a 10x return is extremely slim. This suggests that influencers are primarily acting in their own financial interest rather than in the best interest of their followers. Investors should remain vigilant, rationally assess the true value behind these promotions, and avoid making impulsive decisions driven by social media hype.
It’s important to note that some influencers have deleted promotional tweets that did not yield positive outcomes, meaning we were unable to include this data. Therefore, the actual situation may be even worse than what our study reveals.
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