Data Revealed: The Truth and Common Misconceptions About the Success of Encryption Projects

Unveiling the Success Myths in the Crypto Assets Field: The Truth Behind Data Analysis

The common success secrets of Crypto Assets social media are often misleading. A study analyzing 50,000 data points from 40 major token issuances in 2025 revealed that many widely held beliefs are actually incorrect.

The Truth That Crypto KOLs Won't Tell You: The Four Major Illusions and Data Disproofs of New Project Launches

The Myth of Participation

Many projects invest large amounts of money to improve social media engagement, but research shows that this is almost unrelated to the performance of token prices. Regression analysis shows that the correlation coefficient R² between engagement metrics and price performance is only 0.038. In fact, likes, comments, and shares are slightly negatively correlated with price performance.

The only thing that shows a weak positive correlation is the number of retweets in the week before the release, but the correlation is also weak. This suggests that funds spent on increasing engagement may be ineffective.

The Fallacy of Low Circulation

It is generally believed that issuing with a very small circulating supply can drive up prices, but data shows that the initial circulating supply ratio has no correlation with price performance.

What really matters is the dollar value of the initial market capitalization. Research shows that for every 2.7 times increase in initial market capitalization, the price performance in the first month decreases by about 1.56%. This relationship is so tight that it can almost be said to be causal.

Misconceptions about Venture Capital Support

There is actually no relationship between the amount of funding and the performance of the tokens. The more funds raised, it usually means a higher valuation, which also requires overcoming greater selling pressure. Projects that raised large amounts of funds in research do not necessarily perform better than those with limited funding.

Misconceptions About Timing in Speculation

Traditional views suggest that important news should be released during the project launch week, but data shows that the opposite is true. After the project launch, user engagement tends to decline. Well-performing projects often build their reputation before the launch, rather than during the launch week.

The Truly Effective Method

Research shows that the following factors are more important for project success:

  1. Actual product utility: projects that can generate content naturally perform better.

  2. Trading Retention Rate: Tokens that maintain trading volume after initial hype tend to perform significantly better in price.

  3. Reasonable initial market value: This is the strongest predictive indicator of success.

  4. Authentic communication: A consistent tone that matches the product is more favored.

Why Common Perspectives Can Be Wrong

This disconnection is primarily structural. Social media rewards engagement rather than accuracy. Many influencers have actually never issued a coin and lack real experience.

Practical Approaches of Successful Projects

  1. Focus on building products that people want to use
  2. Reasonable pricing at the time of token issuance.
  3. Communicate sincerely with the audience
  4. Measure the truly important metrics, not superficial data.

Projects that quietly build useful products and release them wisely tend to be more successful than those that cater to social media algorithms. Transparency and a focus on product-driven content are key.

Overall, while popular opinions may be more eye-catching, truly useful information often requires in-depth data analysis to uncover. In the field of Crypto Assets, the secret to success may be more unassuming than we imagine.

The truths about crypto KOLs won't tell you: the four major illusions and data refutation of new project launches

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BlockTalkvip
· 07-09 22:14
suckers fighting machine吧了
View OriginalReply0
DaoDevelopervip
· 07-09 10:18
bruh these stats actually confirm what i've been saying in my github posts... engagement means jack tbh
Reply0
Frontrunnervip
· 07-09 00:32
What is the use of interactive data? It's just a paper tiger.
View OriginalReply0
MemeEchoervip
· 07-07 13:57
Don't listen to his nonsense; real projects have already done a Rug Pull.
View OriginalReply0
OffchainOraclevip
· 07-07 13:53
Again played people for suckers.
View OriginalReply0
LiquidityHuntervip
· 07-07 13:51
What are some good projects to leverage the hype?
View OriginalReply0
BakedCatFanboyvip
· 07-07 13:34
Just mess around with it, it's really damn useful.
View OriginalReply0
WhaleWatchervip
· 07-07 13:32
Playing with data in a trap, but this market never makes sense.
View OriginalReply0
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