A certain token skyrocketed from $30,000 to $15 million. This story sounds a bit crazy, but it perfectly illustrates a fundamental rule in the crypto market—influence equals value.

Every key price breakthrough is backed by leading KOLs. This is not a coincidence but a true reflection of the market. A research team from Harvard Business School conducted a detailed analysis and found that tweets from crypto influencers can indeed generate significant positive returns, especially for tokens with smaller market caps.

Why is the effect so obvious? Imagine a top-tier KOL posting a tweet, seen by millions of followers—including institutional investors, market makers, and retail traders. A single tweet can quickly activate market liquidity, causing the token price to surge. Coupled with the endorsement of founders and such identities, it not only attracts funds but also boosts expectations for the token on exchanges. The stacking of these multiple effects makes the impact truly formidable.

But here’s a harsh truth: the gains brought by KOLs are usually only sustainable in the short term. Studies also show that, in the long run, these positive returns may reverse into negative ones. Most of the gains fade away within a few days after the tweet is posted. The reason a token can continue to rise is actually due to the layered effects of multiple KOL influences and the ongoing heating of market sentiment—this situation is a rare anomaly.

For retail investors, blindly following KOL calls is actually very risky. If you can’t accurately judge the emotional turning point, you might either exit too early like many others and miss subsequent gains, or get caught at a high point and regret it when the price drops. Market sentiment cools down faster than it heats up, and at that point, you become the bagholder.