Arkham Intelligence has unveiled a new feature allowing users to track the wallets of Key Opinion Leaders (KOLs) on X (formerly Twitter).

This development comes amid a flurry of new meme coins, capitalizing on token launchpads for easy launches.

New Arkham Feature Lets Users Track Influencers’ Token Holdings

The update, announced in a recent post, introduces the “Key Opinion Leader (KOL) Label.” It tracks the wallets of influencers with over 100,000 followers on X.

“Influencers with more than 100K+ followers on Twitter/X are now tagged on Arkham with a new label: Key Opinion Leader,” read the announcement.

This means investors can monitor whether influencers genuinely back the tokens they promote or if their endorsements are merely paid advertising. The move has sparked widespread debate within the crypto community, particularly concerning its impact on influencer-endorsed meme coins.

“Biggest scammer on top! Now everyone can watch your wallets. But they should know y’all have multiple ones,” one user wrote.

The introduction of Arkham’s KOL Label comes amid increasing concerns over the reliability of influencer-backed tokens. A recent report revealed that 76% of influencer-endorsed tokens fail to deliver.

Specifically, their value plummeted by more than 90% within just three months.

As BeInCrypto reported, the research suggested earning up to $399 per promotional tweet, incentivizing certain influencers to prioritize financial gain over credibility.

It also showed that many promoted tokens lack fundamental utility and community engagement, leading to inevitable crashes.

“Influencers with over 200,000 followers tend to have the worst performance. The larger the influencer’s following, the lower the performance of the meme coins they promote,” the report claims.

Similarly, blockchain investigator ZachXBT recently exposed 16 influencer accounts on X that coordinated pump-and-dump schemes, leaving their followers to absorb the losses. This fueled debates about the ethical responsibilities of influencers in crypto markets.

With Arkham’s new tracking feature, investors can now scrutinize whether influencers hold the tokens they endorse. This could provide greater transparency in an industry plagued by misinformation and deceptive marketing tactics.

“Interesting move—transparency meets influence,” a user on X remarked.

The pattern mirrors previous crypto fads, where early investors profit while latecomers bear the brunt of financial losses. Arkham’s new tool could expose questionable practices, distinguishing genuine endorsements from misleading promotions.

By tracking influencers’ wallet activities, users can identify whether influencers hold the tokens they promote, indicating a true conviction. They could also spot red flags, such as influencers dumping tokens shortly after promoting them.

Experts, including Tron founder Justin Sun, emphasize the importance of fundamentals, tokenomics, and risk management for investors within the volatile meme coin market.

“I will check on the real social engagement. Are those likes real, or it’s just general bullshit? Do they have lots of influence, and the people really believe them? Also, I will see the founders, see their material, and see the memes they made and the videos they made. I will see if this is the right video and the right social engagement,” Sun elaborated.

These approaches reflect the importance of caution and due diligence instead of relying solely on influencer endorsement.

Leading meme coin Shiba Inu has shed almost 10% of its value over the past week. As of this writing, SHIB trades at $0.0000125.

This price decline coincides with a significant drop in whale holdings during the same period. This signals waning confidence among large investors amid broader market weakness.

SHIB’s Market Confidence Wanes as Whale Sell-Off Accelerates

According to IntoTheBlock, SHIB’s large holders ’netflow has fallen 123% in the past week. This comes amid the meme coin’s 8% price dip. 

Large holders refer to whale addresses that hold more than 0.1% of an asset’s circulating supply. Their netflow measures the inflow and outflow of tokens in their wallets to track whether they are accumulating (positive netflow) or offloading (negative netflow) their holdings.

When this metric falls, it indicates that whales are selling large portions of their assets, leading to increased supply and putting more downward pressure on price.

Moreover, this decline in SHIB whale netflow could worsen the weakening confidence among SHIB retail traders, prompting them to sell their coins in anticipation of further losses. This can accelerate SHIB’s price dip in the short term. 

On the daily chart, SHIB’s falling Relative Strength Index supports this bearish outlook. At press time, this momentum indicator is a downward trend at 35.34.

An asset’s RSI measures an asset’s oversold and overbought conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and due for a decline. Conversely, values under 30 suggest that the asset is oversold and could witness a rebound. 

At 35.05, SHIB’s RSI indicates that the asset is approaching oversold territory but has not fully entered it yet. This suggests weakening buying pressure and hints at the potential for further downside unless the meme coin demand picks up.

SHIB Holds Below Descending Trend Line

SHIB has remained below a descending trend line since December 8, keeping its price in decline. This pattern is formed when an asset’s price consistently makes lower highs over a period, connecting these peaks with a downward-sloping line. It is a bearish trend, indicating sustained selling pressure among SHIB market participants. 

If this decline continues, SHIB risks falling to a seven-month low of $0.0000107.

However, if buying pressure regains momentum, it could drive SHIB’s value to $0.0000166.