What is DeFi Degen?

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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.

The main goal of degen traders or degenerate gamblers as they are called in some sectors is to rapidly pump up token prices within a short timeframe and then massively dump the digital assets when its rapid growth has caught the attention of unknowing investors.

Just like a stock market crash, what follows such a crypto surge is a massive dump that usually leads to losses in excess for unknowing investors. The native token also gets burned as they dive to the lowest price possible. Usually, DeFi degens use these disruptive tactics from time to time to make cool while they jump from one project to the 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.