If you haven't heard of them directly, you're probably familiar with projects that fall into the category of degeneration, called "degens" in English.
As you know, DeFi, which has exploded in recent years, has spawned numerous projects, often recognizable by the names of their tokens. These tokens can be named after foods (the famous food tokens) , celebrities, or even animals, for the less outlandish. The predominant food-related vocabulary reflects the specialty of these "degens," namely yield farming . This is a new method for generating cryptocurrencies. The term itself evokes the concept of high-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 practical terms, it's not so much about agriculture as it is about pure finance. Furthermore, the investment methods of these yield farming enthusiasts remind us of those ruthless traders who speculate on assets with high profits as their ultimate goal.
In fact, the main criticism leveled at these new crypto speculators is that they don't seem to be interested in the underlying projects at all. What interests them, quite clearly, and as you've probably guessed, is solely short-term profit.
They don't hesitate to invest in unregulated and, moreover, useless crypto projects. We're flirting with the line between a joke project (even Dogecoin looks good by comparison) 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 enthusiasts operate often begins on social media, particularly Telegram, Reddit, and Discord. They share information about new projects and decide to invest together. This is similar to how WallStreetBets operates . In fact, some of them are also part of that 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 Yam.Finance project (Moreover, the project seems to be rising from the ashes and now wants to embrace 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.
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 though the Degens know that it is not "ethical", some of them are raking in very big profits. And, above all, a bit in the same trend of the Troll culture, they claim to have fun above all.
Because, if you were looking for a logic, here it is: For them, it's entertainment like any other except that here, in addition, 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 don't yet have the necessary perspective to fully understand the issues and implications of DeFi Degens, but we can see that some projects seem to be trying to distinguish themselves from these outlandish projects, while still incorporating key elements from their universes. This might be the case with many PancakeSwap clones , for example. But again, we can't be 100% certain yet…
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 whether DeFi Degens, after this experimentation, will seek to bring some seriousness to its work. In that case, it's quite clear that DeFi would 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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