Degen
Degen is short for degenerate. This designation is mainly used in DeFi, where many decentralized finance projects were introduced in 2021 and the hype around them attracted further investments until 2022, when the market experienced a significant downturn.
Degen investors are fast-moving traders who operate through private discord channels, telegram groups and anonymous message boards. They move from project to project trying to make a quick buck.
Tips from an analyst
Are Degens good or bad?
Degens like to buy large amounts of coins to drive the price up and induce FOMO in others. After a quick evaluation, they sell. The term degenerate is apt because these entities are causing losses to investors and creating FOMO around nonsensical cryptocurrency projects. This behaviour affects legitimate projects that have to compete for investors with pumped-up projects.
Analyst Opinion
Just like BTC has its hodlers, the DeFi world has its degens. Without them, some projects with real use would stand out more than just the eye-catchy ones. Degens won't just leave DeFi, so it's a good idea not to invest in any DeFi project just on a friend’s recommendation or because you heard it somewhere in a video. You could become a victim of a pump and dump scheme.
Ondřej Tittl
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