Over 97% Fail, Including Influencer Picks
Recent research from CoinWire highlights the risks of investing in meme coins, especially those promoted by influencers on X (formerly Twitter).
Although they promise huge profits, research shows that most of these tokens end up causing significant losses to investors.
The promise of getting rich quick is often tempting, but Most investors end up chasing a mirage. Recent CoinWire Report 1,567 meme coins endorsed by 377 influencers within the past three months were analyzed. The findings are shocking: 76% of influencers promote death meme coins – these coins have lost over 90% of their value.
Other findings include that two-thirds (about 67%) of meme coins promoted by influencers are now worthless. The report also noted that after three months, 86% of the meme coins promoted by influencers had lost 10 times their value. Furthermore, only 1% of influencers successfully promoted a meme coin that gained tenfold.
Short-term performance has been equally dismal. After just one week, 80% of promoted meme coins lost 70% of their value. A month later, the loss expanded to 80%.
Influencer promotions often lead to exponential returns, creating hype and attracting even inexperienced investors. Yet data shows that most campaigns prioritize influencer revenue over the quality of the projects they promote.
Internet celebrities with more than 200,000 followers performed the worst, with an average negative return of 89% after three months. Meanwhile, smaller influencers with fewer than 50,000 followers have seen slightly better results, with some even seeing positive returns over time.
On average, influencers earn $399 per promotional tweet, which incentivizes them to endorse meme coins regardless of their viability. This economic dynamic often leaves audiences bearing the brunt of losses.
X’s role in the memecoin craze
The challenges facing influencer-backed tokens are not isolated incidents. BeInCrypto recently reported that 97% of Meme coins fail, Only with 15 out of 1.7 million achieve sustained success. The reasons are manifold, ranging from lack of practicality to poor project management.
The memecoin ecosystem is also filled with controversy. Blockchain investigator ZachXBT was recently exposed 16 influential accounts on X coordinate pump-and-sell schemesleaving their followers to bear the losses. This has sparked debate about the ethical responsibilities of cryptocurrency market influencers.
Meanwhile, X remains a key platform for promoting meme coins among influencers. The platform’s ability to amplify hype makes it an effective tool for memecoin promotion, but it’s also a breeding ground for financial risk.
However, despite the grim statistics, some traders still find opportunities in this volatile market. Cryptocurrency figures such as Justin SunThe TRON founder recommends evaluating meme coins based on community size, narrative strength, and utility.
Meanwhile, cryptocurrency influencers Miles German Recently shared a four-step plan for trading meme coins: focus on market timing and analysis Tokenomicsunderstand project fundamentals and manage risks through stop-loss strategies. Taken together, these approaches reflect the importance of caution and due diligence.
While the hype surrounding memecoins is undeniable, this context highlights the need for caution. Influencer endorsements, while tempting, are not reliable indicators of a token’s potential. Investors should carefully review projects, considering factors such as utility, community engagement and long-term viability.
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