Most Promoted Memecoins on X Plummet by 90%

Prices of 86% of memecoins promoted by influencers on X over the past three months have plummeted by 90% or more. This was reported by CoinWire researchers, who examined 1567 coins and accounts of 377 bloggers with over 10,000 followers.

Using data from Dune Analytics, they assessed token price movements from their initial market entry, current prices, and prices after promotion: one week, one month, and three months later.

Within one week, 80% of memecoins promoted by bloggers lost 70% of their value. After a month, 90% of these tokens had decreased by 80%. After three months, the price of 86% of the coins had fallen tenfold.

Only 1% of the promoted coins showed a tenfold increase.

Researchers noted a pattern that the more followers a blogger has, the less effective the promoted memecoins are.

“Influencers with more than 200,000 followers tend to show the worst results. Their coins incur losses: 39% after one week and 89% after three months. For accounts with fewer than 50,000 followers, 25% of promoted memecoins showed returns after a week, and 141% after three months,” the report states.

While investors suffer losses, influencers benefit financially from promoting coins, earning an average of $399 per promotional tweet.

“Since 76% of influencers promote dead tokens and have only slim chances of achieving the coveted tenfold increase, it becomes clear that advertising serves the interests of influencers more than their followers,” CoinWire concluded.

Earlier, analysts at Ai_9684xtpa found that 80% of memecoins listed on Binance had increased in price.