Author:CoinWire
Compiled by: TechFlow
With the rise of the Memecoin craze, many Twitter celebrities have packaged these tokens as investment opportunities for quick wealth. However, our research has revealed a sobering truth: most Memecoins have "died", and the vast majority of investors have ultimately suffered significant losses. To unveil the true face of the Memecoin world, we analyzed the performance of more than 1,500 tokens promoted by 377 Twitter celebrities. The following are the results of the data analysis.
Key Findings
76% of Twitter celebrities have promoted "dead" Memecoins
2/3 of the Memecoins promoted by celebrities have "died"
86% of the Memecoins promoted by celebrities have seen a 90% price crash within 3 months
Only 1% of the Memecoins promoted by celebrities have achieved a 10-fold increase
Research Methodology
We screened 377 Twitter celebrities with at least 10,000 followers who frequently promote Memecoins. We then compiled a list of 1,567 Memecoins they had promoted over the past three months.
Through dune analytics, we collected data on the initial promotion price, current price, and price changes one week, one month, and three months after promotion for these tokens.
We defined "dead" Memecoins as those whose current value has dropped by at least 90% compared to the initial promotion price.
Most Twitter Celebrities Promote "Dead" Memecoins
The study found that 76% of Twitter celebrities have promoted Memecoins that have since "died". In fact, 2/3 of the Memecoins promoted by celebrities have become worthless. This indicates that a large number of projects driven by celebrities are actually "digging pits" for investors. These promotions often mislead inexperienced investors, causing them to blindly participate without understanding the risks.
The Real Performance of Memecoins Promoted by Celebrities
The actual performance of Memecoins is vastly different from the glamorous image portrayed in celebrity promotions. The data shows that these promotions have almost never lived up to their promises:
One week after promotion, 80% of Memecoins lost 70% of their value.
One month after promotion, 90% of the tokens further declined by 80%.
Three months after promotion, 86% of Memecoins crashed to 1/10 of their original value.
These data clearly show that Memecoins promoted by celebrities do not have long-term investment value and may instead lead to significant losses for investors.
This phenomenon highlights the extreme instability and high risk of Memecoins promoted by celebrities. The data shows that most investors suffer severe losses within just a few weeks of investing.
Achieving a 10-fold Return Through Celebrity-Promoted Memecoins is Almost Impossible
The appeal of Memecoins lies in their seemingly massive profit potential. However, the reality is far from the expectations:
Only 1% of celebrities have successfully promoted Memecoins that have achieved a 10-fold increase.
Only 3% of the Memecoins promoted by celebrities have achieved a 10-fold growth.
This indicates that despite the hype generated by celebrity promotions, the possibility of achieving high returns through these promotions is extremely low.
The More Followers, the Worse the Promotion Effect
Interestingly, the more followers a celebrity has, the worse the performance of the Memecoins they promote:
Celebrities with over 200,000 followers, their promoted Memecoins lost an average of 39% in one week and 89% in three months.
While smaller celebrities with less than 50,000 followers had a more positive performance: an average gain of 25% in one week and a cumulative gain of 141% in three months.
This suggests that smaller celebrities may be more inclined to promote projects truthfully, while larger celebrities may be more focused on financial interests and overlook the quality of the projects they promote.
Celebrities Profit from Memecoin Promotions
To estimate the revenue celebrities earn from their promotion tweets, we used TweetHunter's Twitter earnings calculator.
Although investors often face losses, celebrities are able to reap substantial financial rewards from Memecoin promotions. The data shows that each promotion tweet can generate an average of $399 in revenue for the celebrity and receive nearly 15,000 views. This indicates that the motivation for celebrities to promote Memecoins is primarily driven by economic interests, even if these tokens may carry higher risks, they can still profit from them while the audience may face losses.
Conclusion
The research data reveals a concerning reality: Memecoin promotions led by celebrities are more detrimental than beneficial to ordinary investors. The data shows that 76% of celebrities have promoted "dead" tokens, and the probability of achieving a 10-fold return through these tokens is extremely low. This indicates that the behavior of celebrities in promoting Memecoins is more for their own economic interests rather than for the benefit of their followers. Investors should remain vigilant, rationally evaluate the real value behind these promotions, and avoid making blind decisions based on social media hype.
It is worth noting that since some celebrities have deleted promotion tweets that did not yield positive results, we were unable to obtain this data. Therefore, the actual situation may be even more severe than the research results indicate.
