Memecoin Influencers Promote Worthless Tokens, Ripping Off Investors: Study

A recent study by CoinWire has shed light on a troubling trend in the world of memecoins, revealing that 76% of Twitter influencers promote tokens

A recent study by CoinWire has highlighted the dismal performance of memecoins endorsed by Twitter influencers, revealing that 76% of these tokens lost nearly all their value.

The research analyzed the performance of over 1,500 memecoins promoted by 377 influencers with large followings, uncovering that two-thirds of these tokens are essentially worthless.

The findings are stark: 86% of influencer-promoted memecoins lost 90% of their value within just three months. In fact, after one month, 90% of these tokens saw an 80% drop. Investors are often misled by flashy promotions, only to face steep losses.

What’s worse, the chances of achieving substantial gains are extremely rare. Only 1% of influencers ever promoted a memecoin that saw a 10x increase in value, and just 3% of the promoted tokens ever achieved such success.

Interestingly, the study also found that influencers with larger followings tend to promote the worst-performing memecoins. Those with over 200K followers saw their promoted tokens bring significant losses, with 39% negative returns in just one week.

In contrast, influencers with fewer than 50K followers had slightly better results, showing a 25% positive return after a week and a 141% increase after three months.

While investors lose out, influencers benefit financially, earning an average of $399 per promotional tweet. With each tweet reaching thousands of views, their incentives to promote questionable tokens are clear, even if their audience ends up with substantial losses.