DWF Ventures: Social Trading Users Face Loss Rates of Up to 93.84%

DWF Ventures has released a research report on social trading, highlighting that social trading platforms are forming a "flywheel effect". Traders build their reputation through public calls, attracting followers who drive up prices, creating a self-reinforcing growth cycle. However, this also brings asymmetric risks and collective volatility. The report shows that among the 292,000 wallets analyzed on the Fomo platform over the past three months, only 6.16% were profitable, with just 25 wallets achieving a net profit of over $10,000. DWF Ventures believes that the platforms capable of long-term retention in the future will be those that build social discovery capabilities through proprietary information layers, rather than merely adding social features to their products.

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