{"id":23636,"date":"2024-11-26T07:10:37","date_gmt":"2024-11-26T07:10:37","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/?p=23636"},"modified":"2024-11-26T07:10:37","modified_gmt":"2024-11-26T07:10:37","slug":"crypto-influencers-on-x-a-dissection-of-a-memecoin-meltdown-and-its-aftermath","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/crypto-influencers-on-x-a-dissection-of-a-memecoin-meltdown-and-its-aftermath\/","title":{"rendered":"Crypto Influencers on X: A Dissection of a Memecoin Meltdown and Its Aftermath"},"content":{"rendered":"\n

A recent study has unveiled a concerning trend regarding the link between memecoins and social media influencers on X (formerly Twitter), highlighting a significant rate of failure.<\/a><\/p>\n

According to research by Coinwire, around two-thirds of cryptocurrency influencers on X have endorsed memecoins that have lost all value.<\/p>\n

<\/span>Minimal Success Rate<\/span><\/h2>\n

Research indicates that merely a tiny fraction of memecoin promotions saw substantial growth, with just 1% of them achieving a tenfold increase in token value. This figure is particularly discouraging given the considerable hype generated by influencers.<\/p>\n

Coinwire reports that over 76% of X influencers promoted now-defunct memecoins. An analyst pointed out that these findings highlight the grim reality about memecoins.<\/a><\/p>\n

The cryptocurrency platform examined upwards of 1,500 memecoin promotions by 377 influencers on X and assessed their performance.<\/p>\n

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Paid KOLs: How Twitter Influencers Promote Dead Tokens and Profit While You Lose<\/p>\n

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.<\/p>\n

Let’s dive into the data. <\/p>\n

2\/ It\u2026 pic.twitter.com\/CCy6Tnc7pt<\/a><\/p>\n

\u2014 Keto (@keto_studio) November 25, 2024<\/a><\/p>\n<\/blockquote>\n

\"\"<\/p>\n

<\/span>More Effective with Smaller Audiences<\/span><\/h2>\n

Coinwire’s study found that smaller influencers tended to perform better than their larger counterparts, attributing this success to more authentic promotional strategies that yielded greater financial returns.<\/p>\n

According to their findings, influencers with fewer than 50,000 followers saw better performance, reporting a 25% positive return after just a week. This figure surged to over 141% after three months.<\/p>\n

\"\"<\/p>\n

In contrast, the research highlighted that influencers boasting larger followings struggled significantly with promotional success.<\/p>\n

Coinwire noted that influencers with over 200,000 followers experienced the poorest outcomes, with their promotional efforts leading to a 39% negative return after one week, which worsened to an 89% negative return after three months.<\/p>\n

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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.\u2026 pic.twitter.com\/EWmmymAS2N<\/a><\/p>\n

\u2014 Wu Blockchain (@WuBlockchain) November 25, 2024<\/a><\/p>\n<\/blockquote>\n

Researchers suggest that one reason for the poor performance of larger influencers stems from their tendency to prioritize financial incentives over the quality of the projects they promote.<\/p>\n

Coinwire states that larger influencers average earnings of $399 for each promotional tweet, provided it meets a minimum of 15,000 views, benefiting financially while resulting in losses for memecoin investors.<\/p>\n

<\/p>\n

This data raises important questions about the role of influencers in the promotion of digital currencies, as many of them appear to have misled investors.<\/p>\n

<\/span>Failure of Influencer-Endorsed Memecoins<\/span><\/h2>\n

Coinwire’s findings reveal that approximately 86% of memecoins that influencers promoted lost 90% of their value after three months.<\/p>\n

Furthermore, 80% of the tokens promoted by influencers dropped 70% in value after just one week, and within a month, 90% saw an 80% decrease. A staggering 86% of these promoted memecoins faced nearly a tenfold loss after three months.<\/p>\n

The report concludes that achieving a tenfold increase through influencer-backed memecoins is virtually impossible, with only 1% of these promotions attaining such success.<\/p>\n

Featured image from DALL-E, chart from TradingView<\/em><\/p>\n