Unveiling the False Advertising of Crypto Assets on Twitter: The Truth About Token Issuance

Crypto Assets Twitter ( CT ) Common token issuance recommendations are often disconnected from reality. A study of 40 major token issuances in 2025 shows that many popular beliefs are actually incorrect.

The Myth of Participation

Many people obsess over Twitter metrics such as likes, retweets, and replies. However, research shows that these engagement metrics are almost unrelated to price performance, with a correlation coefficient R² of only 0.038. In fact, high engagement is sometimes associated with poorer performance.

The only weak positive correlation observed is the number of retweets in the week prior to the release, but the correlation is also very weak. This suggests that investing money in participatory marketing and task platforms may be a waste of money.

The Myth of Low Liquidity

CT prefers projects with "low circulation and high fully diluted valuation ( FDV )", believing that this can create scarcity and drive up prices. However, data shows that the initial circulation ratio is unrelated to price performance.

The truly important thing is the dollar value of the initial market capitalization (IMC). For every 2.7 times increase in IMC, the price performance in the first month will drop by about 1.56%. The key lies in the total dollar value entering the market, rather than the proportion of unlocked Tokens.

The Illusion of Venture Capital Support

There is no statistically significant relationship between the amount of financing and Token performance. Raising more funds often means a higher valuation, which needs to overcome greater sell-off pressure. Additional funds do not automatically translate into better Token performance.

Misunderstandings of Timing in Speculation

Traditional views suggest that the FOMO atmosphere should be maximized during the project launch week. However, data shows that successful projects often establish their reputation before the launch. After the launch, user engagement tends to decrease as users shift their attention to the next opportunity.

The Truly Effective Method

Research has found that the following factors are more important for the success of tokens:

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

2. Transaction Retention Rate - Tokens with maintained trading volume show significantly better price performance.

3. Reasonable initial market value - the strongest predictor of success.

4. Authentic communication - A consistent tone that matches the product is more appealing.

The Misleading Reasons of CT

CT rewards participation rather than accuracy. Many KOLs have actually never issued a Token and lack practical experience. Projects that genuinely launch products often perform well continuously, regardless of the number of Twitter followers.

Practical Approaches of Successful Projects

1. Focus on building attractive products
2. Reasonable pricing at the time of token issuance
3. Communicate sincerely with the audience
4. Measure the truly important metrics

Taking a certain blockchain project as an example, they focused on technical explanations and educational content, rising 150% in the first week after launch. This was driven by sparking people's interest in its innovation, rather than having a massive fan base.

In contrast, projects that invest heavily in task platforms and marketing often see their tokens plummet due to a lack of genuine understanding and attention.

Ironically, while many cater to Twitter's algorithms, the ones that truly succeed are those quietly building useful products and wisely releasing them. Projects that are open, transparent, and focused on product-driven content consistently perform well.

CT does not intend to mislead, but when incentive mechanisms reward popular opinions rather than hard data, useful information can easily be drowned out by noise.