“`Bitcoin

• Recent academic research sheds light on the short and long-term returns of altcoin recommendations by crypto influencers.
• Four scholars, including Joseph Pacelli from Harvard, have published a detailed report analyzing the profitability of coins promoted by influencers.
• “The findings reveal that the success attributed to these influencers may not be as significant as perceived,” notes the report.

This article delves into a recent academic study that exposes the real impact of crypto influencers on altcoin returns, offering a critical perspective on their recommendations.

Initial Findings on Crypto Influencer Impact

The study, involving prominent academics, scrutinized the performance of altcoins post-recommendation by influencers. It was found that these coins typically saw an initial profit increase of 1.83% to 1.57% within the first 1-2 days following the endorsement.

Longer-Term Effects and Market Dynamics

Despite the short-term gains, the report highlights a significant downturn in the performance of these altcoins over longer periods. Specifically, a loss of 2.24% after 10 days and up to 6.53% after 30 days was observed, challenging the sustainability of influencer-driven investments.

Market Influence of Top Crypto Personalities

According to Wu Blockchain, none of the top 20 most influential crypto personalities are Turkish, with CryptoDiffer, rektcapital, and BigCheds leading the rankings. This section of the report underscores the geographical diversity and influence patterns in the crypto influencer sphere.

Conclusion

The study conclusively points out that while influencer recommendations may lead to short-term profitability, they often result in significant losses over a month. Investors are advised to conduct their own thorough research before committing to investments based on influencer promotions.

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