Memecoins are attractive but high risk: Memecoins are known for their rapid price swings, from peak heights to rapid declines. This particularly attracts investors looking for quick profits, though many face significant losses. Recent analysis shows that crypto influencers on social media, when promoting memecoins, are leading to a very high failure rate.

Boom and bust reality: Since April, millions of new memecoin tokens have appeared, creating a booming wave. However, only 1% of these are recommended by influencers as having potential to increase tenfold in value. Conversely, most quickly faded away. A large portion of promoted memecoins no longer exist after just three months on the market.

Influencer system and consequences: Many influencers focus on quick profits without thoroughly considering investors’ capital. Promotions from influencers with large followings often result in significantly greater losses. In some cases, losses reach 39% in just a week and 89% within three months. Smaller influencers (under 50,000 followers) tend to yield more favorable outcomes, sometimes achieving +141% profits after three months.