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Eighty-six percent of meme tokens promoted by influencers on X over the past three months have dropped 90% or more in value. This finding comes from a report by CoinWire, which analyzed 1,567 tokens and 377 influencer accounts with over 10,000 followers.

Decline in Token Value

Using data from Dune Analytics, researchers tracked the price movements of tokens from their initial market launch to their current prices, as well as one week, one month, and three months after promotional campaigns.

Within one week of promotion, 80% of these meme coins lost 70% of their value. After one month, 90% had declined by 80%. After three months, 86% of the tokens had seen their prices fall tenfold.

Only 1% of the promoted tokens achieved the coveted 10x growth in value.

Influence vs. Effectiveness

The report noted an inverse correlation between the size of an influencer’s following and the success of the tokens they promote.

“Influencers with over 200,000 followers tend to show the worst results. Tokens they promote see losses of 39% after one week and 89% after three months. Accounts with fewer than 50,000 followers had 25% of their promoted tokens gain value after one week, with returns of up to 141% after three months,” the report stated.

While investors suffer significant losses, influencers profit from these promotions, earning an average of $399 per sponsored post.

“With 76% of influencers promoting dead tokens and slim chances of achieving the desired 10x growth, it becomes evident that these advertisements primarily benefit the influencers rather than their followers,” CoinWire concluded.