Arkham Intelligence has just introduced an innovative feature that allows users to track the wallet activities of Key Opinion Leaders (KOLs) on X (formerly known as Twitter).
This new tool comes at a time when a wave of new meme coins is flooding the market, taking advantage of token launchpads for convenient launches.
The Latest Arkham Feature Lets Users Monitor Influencers’ Tokens Holdings
In a recent post, the company announced the introduction of the "Key Opinion Leader (KOL) Label." This feature enables users to track the wallets of influencers with more than 100,000 followers on X.
"Influencers with over 100K+ followers on Twitter/X are now identified on Arkham with a new label: Key Opinion Leader," the announcement stated.
This update allows investors to keep tabs on whether influencers genuinely support the tokens they endorse or if their promotions are merely paid advertisements. The introduction of this feature has sparked debates within the cryptocurrency community, especially regarding its impact on influencer-backed meme coins.
"Biggest scammer in the spotlight! Now everyone can monitor your wallets. But keep in mind that many influencers have multiple wallets," commented one user.
The rollout of Arkham's KOL Label coincides with growing concerns about the credibility of tokens endorsed by influencers. According to a recent report, 76% of influencer-supported tokens fail to meet expectations, with their value dropping by over 90% in just three months.
As BeInCrypto highlighted, some influencers earn up to $399 for each promotional tweet, creating an incentive for prioritizing financial gain over credibility. The report also pointed out that many promoted tokens lack practical utility and community engagement, leading to inevitable crashes.
"Influencers with more than 200,000 followers tend to showcase the worst performance. The report suggests that the larger an influencer's following, the poorer the performance of the meme coins they endorse," the report noted.
Similarly, blockchain investigator ZachXBT recently exposed 16 influencer accounts on X for engaging in pump-and-dump schemes, leaving their followers to face financial losses. This revelation has sparked discussions about the ethical obligations of influencers in the crypto market.
With Arkham's new tracking feature, investors now have the ability to verify if influencers hold the tokens they promote, offering a layer of transparency in an industry plagued by misinformation and deceptive marketing tactics.
"An intriguing development where transparency intersects influence," remarked a user on X.
This tool could potentially uncover questionable practices, differentiating authentic endorsements from misleading promotions and assisting investors in making informed decisions within the unpredictable meme coin market.
By observing the wallet activities of influencers, users can determine whether these individuals actually hold the tokens they endorse, indicating a genuine commitment. Additionally, users might identify warning signs, such as influencers selling off tokens shortly after endorsing them.
Industry experts, including Tron founder Justin Sun, stress the significance of understanding fundamentals, tokenomics, and risk management in navigating the volatile meme coin market.
"I will assess the actual social engagement. Are those likes genuine or just superficial? Do they truly hold influence, and are people genuinely swayed by them? I will also examine the founders, their content, and the memes and videos created. It's crucial to validate the authenticity of the content and engagement," elaborated Sun.
These viewpoints underline the necessity for careful considerations and due diligence rather than solely relying on influencer endorsements.