Summary: CoinWire conducted a research where it found out that a huge amount of memecoins which influencers promote and advertise as the next big thing have lost their value. The study shows that about 76% of Influencer promoted memecoins have reached worthlessness. The research also expresses how the influencers manage to earn some profit from paid promotions while the investors suffer loss as the token starts to collapse within months of being started.
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Majority of Memecoins Lose Value
The analyst of the research found out that out of over 1,500 memecoins promoted and advertised by 377 influencers, 86% of these projects and tokens lost 90% of their value within three months, which is just insane to think about. Not only that but 80% of such token lose 90% valuation on just first month.
Small Influencers Perform Better
This might seem like a huge shock but statistically it’s true, small influencers with under 50K followers experience better returns including 25% gain in one week and 141% growth after three months.
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Profit for Influencers, Losses for Investors
Most influencers prioritize their own financial gain rather than their audiences trust. Influencers earn an average of $399 per tweet, despite the flashy promotions and non stop ads from such influencers, only 3% of memecoins have achieved something other couldn’t and left their mark and are still continuing to do good. With such small success rate, paying influencers for promotions seems super risky.