PANews reported on November 25 that according to a study by Bitcoin.com, more than three-quarters (76%) of the MEME coins promoted by crypto KOLs on X no longer exist. Furthermore, two-thirds of the MEME coins they promoted were worthless. In contrast, the study found that only 1% of the 377 identified influencers saw their promoted MEME coins increase in value by tenfold.
The report reveals the reality of investors blindly investing in MEME coins based on the enthusiastic recommendations of KOLs. These often unregulated promotions have led investors into a abyss of failure. Within 7 to 90 days of being promoted, 80% of the MEME coins saw their value plummet by 70% in a week, 80% in a month, and as much as tenfold within three months.
The study found that KOLs with over 200,000 followers tend to perform the worst. Their MEME coin promotions resulted in about 39% negative returns in a week and 89% negative returns in three months. On the other hand, KOLs with fewer than 50,000 followers performed better, with 25% positive returns in a week, and their promotions ultimately yielded 141% positive returns in three months. To avoid becoming the next victims of influencer-driven scams, the CoinW research report urges investors to be cautious and question the true value of these promotions.
