But, what is DeFi Degens? Degenerate traders?

If you have not heard of it directly, you have certainly heard of projects that fall into the category of degeneration, called “degens” in English.

As you know, DeFi, which has exploded in recent years, has given rise to numerous projects, often recognizable by the names of their tokens. They can be named after foods (the famous food tokens, celebrities or animals for the less bizarre. If the lexical field is mainly that of food, it is to echo the specialty of degens, namely Yield farming, In fact. A new method for generating cryptocurrencies. A word that recalls yield agriculture. They are part of a subculture of individual traders who are self-taught in trading and financial assets.

DeFi Degens is a subculture in crypto culture, driven by speculators looking to make a profit and have fun at the same time.

However, for many, in concrete terms, it comes down not so much to agriculture as to pure finance. Even more, the way of investing of these followers of Yield farming reminds us of those relentless traders who speculate on assets with high profits as their ultimate goal.

In fact, if there is criticism about these new speculators in crypto, it is that they do not seem at all interested in the basis of the projects. What interests them, very clearly, and you understood it, It’s only short-term profit.

They do not hesitate to invest in unregulated and otherwise useless crypto projects. We flirt between the joke project (even the dogecoin next door is a good student next door) and sometimes even a scam.

It is this subculture within crypto culture that we call DeFi Degens, degenerative DeFi. Or for the acerbic, the DeFi degenerates.

How do people work in the ecosystem?

The way DeFi Degens enthusiasts operate often begins on social networks. Especially Telegram, Reddit and Discord. They share information on new projects and decide to invest in them together. This may bring to mind the mode of operation of wallstreetbets. Moreover, some are also part of this group.

The problem is that they claim to invest in these projects to earn money on the one hand but also just to have fun. They do not seek to take a closer look at a project or to finance truly useful and innovative projects.

For a large part of Degens, DeFi is above all a playground.

Under their leadership, a large part of DeFi serves as a springboard for projects which are hybrid projects between monetary projects and online games. These hybrid projects often have surprising token names and are often linked to food lexical camps.

The emblematic example of DeFi Degens is certainly the project Yam.Finance (Besides, the project seems to be reborn from its ashes and now wants to assume its Degens side).

DeFi Degens or artificial market manipulation

If Yam has become a symbol it is because it was the first project where we clearly saw the work of the Degens at work. The Yam protocol meant that you could withdraw your tokens every 12 hours. Before making the withdrawal, the Degens were playing the market to increase the value of the token.

DeFi people play with the markets and use unfair techniques that artificially increase tokens. Based on pump and dump, the most useless tokens can fly away at stratospheric prices. They can also collapse a few hours later as was the case with the tragic HOTDOG which went from $4000 to $1 in a few minutes.

The image speaks for itself, doesn't it?

Then, once the Degens reap the profits, they begin to abandon or force their death of the tokens which will then be buried in the shitcoin cemetery…

Thus, we are clearly involved in market manipulation using formidable techniques. The participants who do not understand this logic are the ones who burn their fingers.

And, above all, this overshadows real projects which have no visibility and which struggle to gain users even though the project is solid and useful for the entire community.

Likewise, this further discredits crypto for those who are already skeptical….

Is DeFi Degens negative for the crypto universe in general?

Even if the Degens know that it is not “ethical”, some of them reap very large profits. And, above all, a bit in the same trend of Troll culture, they claim to have fun above all.

Because, if you were looking for logic, here it is: For them, it's entertainment like any other except that there, plus, they can earn money.

They can also enjoy a new power, that linked to the masses, a bit like the WallstreetBets who savored their victory of being able to outwit the largest Hegde Fund, for example.

Most of the time, the projects the Degens invest in are unaudited, unregulated, and often based on complex (intentionally?) cryptic rules.

We do not yet have the necessary perspective to fully understand the issues and outcomes of DeFi Degens, we can nevertheless see that certain projects seem to seek to distinguish themselves from these crazy projects, while incorporating the key elements of their universe. This may be the case for many copies of PancakeSwap, For example. But here, again, we do not yet have 100% certainty…

The Degens are clearly testing the limits of protocol codes and seeing the threshold of tolerance within the crypto community…

Now, it remains to be seen if the DeFi Degens after playing, try to put a little seriousness into your work. In this case, very clearly, DeFi would clearly have a bright future ahead of it.

We have written other articles on the subject (if you are interested):

Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.

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