The allure of quick gains has made meme coins a hot topic among Twitter influencers. However, an in-depth analysis of over 1,500 meme coins promoted by 377 influencers uncovers a grim truth: most are “dead” tokens, and investors are left holding the bag.

  1. Dead Meme coins Dominate:
    • 76% of influencers promote meme coins that lose 90% of their value within three months.
    • 2 out of 3 promoted memecoins are effectively worthless.
  2. Rapid Losses for Investors:
    • 80% of promoted tokens lose 70% of their value within one week.
    • After one month, 90% of these tokens decreased by 80%.
    • By three months, 86% experience a 10x drop in value.
Most of the meme coins promoted in X have lost 90% of their value
  1. Rare 10x Gains:
    • Only 1% of influencers promoted memecoins that achieved a 10x gain.
    • Merely 3% of promoted memecoins ever see such returns.
  2. Bigger Influencers, Bigger Losses:
    • Influencers with 200K+ followers generate the worst returns, with 89% negative performance after three months.
    • Smaller influencers (<50K followers) yield better outcomes, with 141% positive returns after three months.
  3. Influencers Profit While Investors Lose:
    • Influencers earn $399 per promotional tweet, averaging 15,000 views per tweet.
    • Financial incentives drive promotions, even for low-quality tokens, highlighting a misaligned incentive structure.
Most of the meme coins promoted in X have lost 90% of their value\CoinWare
Most of the meme coins promoted in X have lost 90 of their valueCoinWare

Methodology:

  • Analyzed 1,567 memecoins promoted by 377 Twitter influencers with at least 10,000 followers.
  • Defined “dead” tokens as those losing 90% of their value from the initial promotion.
  • Used Dune Analytics to track token prices over one week, one month, and three months.

Why This Matters:

The data shows that influencer-driven meme coin promotions often mislead investors with promises of high returns. In reality, these promotions result in significant losses, benefiting influencers at the expense of their followers.

Meme coins rarely deliver the gains promised by Twitter influencers, with most becoming worthless shortly after promotion. Investors should exercise extreme caution, conduct due diligence, and avoid falling for the hype perpetuated by influencers prioritising their financial gain over audience trust.