The vast majority of meme coins promoted by influencers on social media platforms often end up “dead” — their value drops by 90% or more within three months.

The Reality of Meme Coin Promotions

The attention surrounding meme coins has led many famous personalities to promote these tokens as a quick way to make money. However, research shows an unpleasant reality: most meme coins have no value, and many investors face heavy losses.

“Our research reveals a sobering truth: most of these meme coins are, in fact, dead, and the majority of investors end up with significant losses.”

To understand the meme coin situation, experts analyzed data from over 1,500 tokens endorsed by 377 influential users. They selected individuals with at least 10,000 followers who frequently promote meme coins and compiled a list of 1,567 meme coins promoted over the past three months.

Using analytics tools, experts collected information on the price when the meme coins were first promoted, the current price, and the price after one week, one month, and three months. A meme coin is considered dead if its current value has fallen by 90% or more compared to the initial promotion.

“76% of influencers have promoted meme coins that are now dead. Two out of three meme coins they promote are worthless. This means that many influencer-driven promotions essentially set up investors for failure.”

The Effectiveness of Meme Coin Promotions

The actual situation with meme coins differs significantly from influencers’ optimistic portrayals. Statistics show that these projects rarely meet their expectations: after a week, 80% of meme coins promoted by influencers lose 70% of their value. After a month, about 90% of these tokens lost around 80% in value, and after three months, 86% of them fell in price by ten times.

This trend indicates significant instability and volatility of meme coins backed by influential individuals. Consequently, most investors face serious losses, often just a few weeks after investing.

Achieving High Returns Is Almost Impossible

One main factor that makes meme coins attractive is their potential to generate significant returns. However, in reality, this almost never happens. Only 1% of influencers successfully promoted meme coins that achieved significant growth. Furthermore, only 3% of meme coins promoted by influencers ever achieved such a significant increase.

Interestingly, the more followers an influencer has, the worse the performance of the meme coins they promote. Influencers with over 200,000 followers tend to perform the worst, with their meme coin promotions losing 39% of their investment within a week and 89% within three months.

In contrast, influencers with fewer than 50,000 followers perform better, with 25% of their revenue positive within a week and a 141% increase within three months. This may indicate that smaller influencers are more sincere in their promotional approaches, while larger ones often prioritize financial gain over the quality of the projects they support.

Influencers’ Earnings from Meme Coin Promotions

While investors often lose money, influencers benefit from promoting meme coins. They earn an average of $399 for each promotional tweet that attracts about 15,000 views. In this way, influencers promote even the most dubious tokens in the hopes of making a high profit.

Influencer Promotion is Mostly Harmful

The data highlights a disturbing reality: meme coin promotion by influencers is mostly doing more harm than good for ordinary investors. 76% of influencers promote tokens with little to no activity, and the probability of getting the desired 10x return is extremely low.

“Investors need to be cautious, questioning the true value behind these promotions and avoiding decisions driven by social media hype alone.”

Research shows that meme coin hype on social media is beneficial for influencers but almost always disastrous for investors. Most of these tokens quickly lose their value, and the chances of serious profits for investors who believe the buzz are minimal.

#DataScience #StableCoin

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