‘X’ Influencers’ Hype On Dead Memecoins Costed Investors Big

Memecoins were a part of quick thrills, wild promises, and viral trends. They’ve captured the internet, luring investors with unimaginable returns. But behind the shine lies reality, especially on platforms like X, where influencers hyped up these tokens. The data reveals the truth: most meme coins promoted by influencers are financial traps, according to Coinwire.

Let’s explore this phenomenon in detail.

What are Memecoins?
A meme coin is a cryptocurrency named after characters, individuals, animals, artwork, or anything else in an attempt to be humorous and light-hearted and attract a user base by promising a fun community.

How many types, and What’s their value?

• Dogecoin (DOGE): Market cap $14.42 billion, price $0.09854
• Shiba Inu (SHIB): Market cap $7.97 billion, price $0.000135
• Pepe (PEPE): Market cap $3.16 billion, price $0.000007494
• Dogwifhat (WIF): Market cap $1.48 billion, price $1.48
• Bonk (BONK): Market cap $1.19 billion, price $0.00001709
• Floki (FLOKI): Market cap $1.17 billion, price $0.0001223
• Brett (BRETT): Market cap $747.13 million, price $0.07486
• Dogs (DOGS): Market cap $627.97 million, price $0.001206
• Popcat (POPCAT): Market cap $565.59 million, price $0.566
• Book of Meme (BOME): Market cap $412.09 million, price $0.005952

The Reality Behind Memecoin Promotions

When someone scrolls through Twitter, it’s impossible to miss the glitzy posts about memecoins. Promises of overnight profits dominated the space. However, a study shows that these promotions are far from what they seem. Out of 1,567 memecoins analysed, a shocking 76% of X influencers were found promoting coins that are now considered dead. Dead, as in they won’t literally die and be burnt or buried.

What does “dead” mean?
If a coin’s value has dropped by 90% or more since its inception, it’s worthless. Two out of every three memecoins pushed by influencers were empty promises.

These promotions lead to major financial losses for unsuspecting investors. The research highlights that 86% of memecoins lost 90% of their value within three months of being promoted by influencers. This pattern of instability shows how unreliable these influencer-backed tokens are.

How Fast Did Memecoins Sink?

Unlike the hype memecoins had, the profits faded as quickly as they appeared.

• Within one week of promotion, 80% of memecoins lost 70% of their value.
• By the one-month mark, 90% of these tokens have dropped by 80%.
• After three months, 86% have seen their value collapse by 10x.

For an average investor, this means that the moment they invest in a memecoin, they have zero chances of making money. It’s a harsh reality that says otherwise in the tweets that promised financial freedom.

The biggest bait was the promise of massive returns. Data shows that this is more myth than reality. Only 3% of memecoins promoted by influencers manage to achieve a 10x rise in value. Only 1% of influencers were associated with a memecoin that reached those profits. These odds reveal just how rare these success stories are and how false promotions are used to fuel unrealistic expectations.

Bigger Influencers, Bigger Problems

Interestingly, the size of an influencer’s following is inverse to the quality of the memecoins they promoted. Influencers with over 200,000 followers pushed the worst-performing tokens. On average, these promotions resulted in a 39% loss within a week and an 89% loss within three months.

Influencers with fewer followers (under 50,000) showed better performance. Their promotions deliver 25% positive returns within a week and an impressive 141% gain after three months. This suggests that micro-influencers were careful and selective about the tokens they promoted or just got lucky. More prominent influencers prioritised financial incentives over authenticity.

Why Influencers Promote Memecoins

Simple, promoting memecoins isn’t about their content quality, it’s just about the money. The research estimates that an average influencer earns INR 33,000 (around $ 399) per promotional tweet. The tweets attracted more than 15,000 views each, making them goats regardless of the coin’s performance.

While those invested must bear the losses, influencers walk away with guaranteed promotional earnings. This creates a system where influencers benefit from promoting risky or worthless projects, leaving their followers to deal with the consequences. Is this what trust between an Influencer and a Viewer should be like?

What Can Investors Do Now?

The coin’s craze highlights the importance of caution in the digital age. Instead of mindlessly following influencers, investors should focus on thorough research. Memecoins might look like easy money, but the reality is far more complex and risky. With a minimum understanding of the fundamentals, investors risk and fall into a cycle of loss and regret. It is better not to blindly trust influencers but to carefully consider information from multiple sources.

A Lesson for the Digital Era

This memecoin story must act as a reminder of how social media can sometimes create illusions. Behind the trusted promotions lies a dangerous truth: most influencer-backed memecoins were traps. Not always, but this time, it’s business for influencers. But for the everyday investor, it’s a financial ambush.