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Arkham Intelligence’s recent launch of the KOL Label raises pivotal questions about the integrity of influencer-backed cryptocurrency promotions.
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As influencers gain financial incentives for endorsements, it has become clear that a staggering 76% of their promoted tokens fail, igniting calls for more accountability.
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Arkham’s new tool may expose potential deceptive practices, with one influencer stating, “Biggest scammer on top! Now everyone can watch your wallets,” highlighting the market’s demand for transparency.
This article explores Arkham’s KOL Label, which unveils influencer token holdings, shedding light on cryptocurrency endorsements and their reliability.
New Arkham Feature Lets Users Track Influencers’ Token Holdings
The recent update from Arkham Intelligence introduces the “Key Opinion Leader (KOL) Label,” enabling investors to track the wallets of influencers boasting over 100,000 followers on X. This feature aims to clarify whether endorsements are genuine or merely paid promotions.
“Influencers with more than 100K+ followers on Twitter/X are now tagged on Arkham with a new label: Key Opinion Leader,” the official announcement stated. This addition to their platform empowers users to sift through noise and discern the authenticity of promotional claims.
This move has sparked extensive discussion within the crypto community, intensifying scrutiny on influencer-endorsed tokens, particularly amid a wave of meme coin launches. Investors now have a tool at their disposal to assess whether their favorite influencers truly believe in the tokens they promote.
“Biggest scammer on top! Now everyone can watch your wallets. But they should know y’all have multiple ones,” commented a user on X, illustrating the skepticism pervading the market. The introduction of the KOL Label embodies a response to growing apprehensions about the **credibility** of influencer endorsements.
Research indicates that a whopping 76% of tokens endorsed by influencers fail to achieve sustained value, often witnessing plummets of over 90% within a short span of three months. This alarming statistic underscores the need for greater vigilance in how cryptocurrencies are marketed.
As reported by COINOTAG, influencers are reportedly earning as much as $399 per promotional tweet, raising serious questions about their motivations: “Influencers with over 200,000 followers tend to have the worst performance. The larger the influencer’s following, the lower the performance of the meme coins they promote,” the research concluded.
Success Rate of Influencer Predictions based on Followership. Source: CoinWire Research
Alongside this, blockchain investigator ZachXBT recently uncovered 16 influencer accounts on X that were involved in coordinated **pump-and-dump schemes**. Such revelations elevate discussions on the ethical duties of influencers within the crypto landscape as they attract followers who may not fully understand the risks involved.
Arkham’s innovative tracking feature allows investors to scrutinize influencer wallet activities closely. By monitoring holdings, users can understand influencers’ true commitments. Are they holding onto the tokens they advocate for, or are they quickly offloading them after securing profits?
Experts in the field, including Tron founder Justin Sun, emphasize the importance of evaluating fundamentals and tokenomics before investing in volatile asset classes like meme coins. He shared his insights: “I will check on the real social engagement. Are those likes real, or is it just general feedback? Additionally, I will examine the founders and their content to gauge authenticity.”
Elaborating further on the best investment strategies, Sun hinted at a need for diligence rather than solely relying on celebrity endorsements, advocating for a well-rounded examination of potential investments.
Conclusion
In conclusion, Arkham Intelligence’s launch of the KOL Label presents a significant advancement towards transparency in the cryptocurrency market. As influencer-backed tokens continue to flood the space, this tool offers a unique opportunity for investors to assess the legitimacy of endorsements critically. With the growing trend towards accountability, we may see a shift in how cryptocurrencies are marketed and perceived. Engaging with this new level of transparency could lead investors to make more informed decisions, ideally safeguarding their investments against misleading promotions.
