A DeFi Degen, or decentralized finance degenerate, is a trader interested in risky, niche, unaudited crypto projects. DeFi Degens often focus their investment on meme tokens and joke projects, and the term is often associated with pump and dump price schemes.

What is a Degen Crypto?

Degan crypto is essentially a subculture that exists in the defi space. This subculture is associated with unruly elements, pump and dump schemes, meme coins, and other less than savory operators. Degen crypto investors are quick-moving traders that operate via private discord channels, telegram groups, and anonymous message boards, that move from project to project, trying to make quick money and little else.

The reputation of Degen investors and Degen-associated projects is pretty poor, as many of them are predicated on taking advantage of naive and inexperienced investors by hyping up projects that often have little to no intrinsic, utility, or reputational value. Creating a sense of FOMO for unwise investors that invest without the appropriate due diligence. This of course allows Degen’s to offload their investments on the newcomers, leaving them with tokens that will almost certainly depreciate rapidly.

To many, this operational strategy is quite similar to predatory gambling practices that lure the sick or unsuspecting into potentially disastrous financial decisions.

On the other end, Degen projects can sometimes be an honest joke. Little more than a meme coin created without any real intention, that cost investors pennies, who expect nothing more than a humorously named token and perhaps a funny story to tell each other.

Gambling in Crypto

Yam finance is an unenviable example of what DeFi degens are capable of. The crypto project collapsed in 2020 and its crypto & market value dropped considerably. The price crashed from $14 to less than $1 within two hours, while its roughly $750,000 curve token was lost. As of the time of writing, the price of Yam Finance native token is still below $1.

To the degenerate gamblers, every DeFi project provides an opportunity to make a quick and easy profit and have fun at the same time.