Memecoins are known for their meteoric rise before fading into obscurity. They attract traders looking for quick gains, but these investments are also synonymous with heavy losses. A recent study highlights a troubling phenomenon: on X, formerly Twitter, the majority of crypto influencers praise memecoins doomed to failure. Focus on these risky practices and their disastrous consequences.
Memecoins: an Eldorado poisoned by influencers
Since April, there have been a million new crypto tokens heralding the phenomenon of Memecoin Mania. But all is not so rosy for this asset class. The figures of theCoinwire study are without appeal: 76% of crypto influencers on X have promoted memecoins that no longer exist today. Among them, only 1% recommended projects that increased their value tenfold. The rest ? Assets doomed to collapse.
Why such a fiasco? Because many influencers favor immediate gainsin defiance of naive investors. The memecoins they recommend see their value plummets by 70% in the first weekto achieve a loss of 80% in one month and a total collapse in three months.
Some key figures on the promoted memecoins:
- 80% lose 70% of their value in a week;
- 90% drop 80% in a month;
- After three months, 86% lost ten times their initial value.
Some investors, such as this Gen Z trader who pocketed $30,000 in a rug pull, manage to take advantage of this volatility. But these are exceptions : the majority ends up suffering heavy losses.
Crypto regulation: towards the end of influencer abuse?
Faced with these excesses, several regulators are trying tosupervise the practices of influencers. Some are considering applying protective laws from consumers to promotions on social networks. But the challenge is colossal, because strategies evolve faster as regulations.
Influencers with large audiences, particularly those with more than 200,000 subscribersturn out to be particularly harmful. According to the study, their promotions lead to 39% losses in one week and 89% in three months. On the other hand, small influencers (less than 50,000 followers) offer much better returnseven reaching +141% after three months.
As Coinwire points out:
“ Investors should be wary of attractive promotions and examine the real value of projects. »
It remains to be seen whether laws will really curb this market where each tweet can ruin lives.
Thus, the memecoin crisis does not only affect ephemeral projects on Solana, but extends to pillars like Dogecoin and Shiba Inu, already hard hit. In this merciless universe, caution remains the best weapon against the illusions sold by tempting tweets.
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