DeFi Degen: The Wild Side of Crypto Finance
DeFi Degens is a subculture associated with a part of decentralised finance known for pump-and-dump schemes.
What are DeFi Degens?
DeFi is the habitat for many of the most important new projects in the world of financial services and is seen by many as the next frontier for cryptocurrency and finance in general. But there’s another aspect to DeFi – it has to do with unmanaged, unregulated crypto projects that are on the fine line between a joke and a scam. Such projects are the perfect home for the subculture known as DeFi degens.
Decentralised finance, for many Degen, is an opportunity to develop projects that are something between money-making projects and massively multiplayer online gaming. They take the form of confusing and unpredictable tokens, such as the ill-fated Yam, which has become a DeFi Degen symbol.
Yam, for example, involved dropping new tokens every 12 hours, after which users would frantically accumulate the value of tokens before withdrawing their profits. Participants who don’t understand how these DeFi projects work are likely to go broke, but DeFi sees them as a fun and profitable pastime that also provides an opportunity to test the boundaries of cryptocurrency and the limits of acceptability in the cryptocommunity.
DeFi’s Degenes are closely tied to the pump and dump trend, where flawed coins are hyped on private forums and channels and then dumped or crash – but not before Degenes make their profits.