What is DeFi Degen?

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.

What is a Degen Crypto?

Degan crypto is essentially a subculture that exists in the defi space. This subculture is associated with unruly elements, pump and dump schemes, meme coins, and other less than savory operators. Degen crypto investors are quick-moving traders that operate via private discord channels, telegram groups, and anonymous message boards, that move from project to project, trying to make quick money and little else. 

The reputation of Degen investors and Degen-associated projects is pretty poor, as many of them are predicated on taking advantage of naive and inexperienced investors by hyping up projects that often have little to no intrinsic, utility, or reputational value. Creating a sense of FOMO for unwise investors that invest without the appropriate due diligence. This of course allows Degen’s to offload their investments on the newcomers, leaving them with tokens that will almost certainly depreciate rapidly.

To many, this operational strategy is quite similar to predatory gambling practices that lure the sick or unsuspecting into potentially disastrous financial decisions. 

On the other end, Degen projects can sometimes be an honest joke. Little more than a meme coin created without any real intention, that cost investors pennies, who expect nothing more than a humorously named token and perhaps a funny story to tell each 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.

 

What is Crypto Shilling?

What is shilling in crypto?

The short answer: Shilling a cryptocurrency refers to the advertising of a project before it ends in a rug pull.

The slightly longer answer: crypto shilling is when a person is actively engaging in covert endorsement of a cryptocurrency, they’re shilling it. The end goal is to generate hype around the project so that people buy into the buzz and invest. People invest > the demand for the token rises > the price increases.

What kind of crypto shilling can you look out for?

Crypto shilling isn’t as obvious as someone saying “Hey! Look at this great token, you should 100% invest in it right now if you want to make money and save the world!”  Although a crypto shill is often less obvious, the flags glare red when you know what to look for. Most of the time, individuals or organizations shilling a particular cryptocurrency will use one of the following methods:

The influencer

Yeah, not all influencers are on Instagram and not all influence is good. In the cryptocurrency scene, you might encounter an influential figure like a celebrity (not even necessarily crypto-related) who has actively put their name and endorsement behind a project. They will encourage new and old investors to invest in the project without necessarily offering transparency into why they back the project. Go in with caution because there’s a possibility that the celebrity has been paid to promote sales of the cryptocurrency and they don’t have any real insight – or interest – in the project.

The red flag: When an influential figure seems to suddenly turn their attention and advocacy to a cryptocurrency – without any signs of interest in the market before – and promote that their fans buy-in. 

The enthusiastic businessman

This type of shilling is practiced by exceptional marketers, but not necessarily tech experts. These shills will invest in a token and then advocate the shill out of it so that others invest. Once the cryptocurrency reaches a tasty price tag after people flood in, the shill will tap out and sell, taking a massive profit with them. It’s also called a pump-and-dump strategy and leaves new investors in the lurch when the project price suddenly falls after big, bad businessmen sell out.

The red flag: The businessman is hyping up the profit you could gain rather than talking about the use-case or fundamental function of the cryptocurrency. Often these shills are entrepreneurs or professional investors in other markets and make their money by trading.

The zealous founder or team member

If you had a business, you’d want to see it succeed right? Of course. And most founders and teams behind a cryptocurrency project are the same. So to entice new investors, they’ll advertise their project and hype it up so that it gets attention and funding. It’s not necessarily as malicious as a paid influencer or a businessman trying to bag a profit, but it’s still worth recognizing that a person might be overselling their project. 

The red flag: The team promises that their project will be able to deliver the world and more without having a well-documented white paper or roadmap. If there’s hype and hurry without function and focus, you might be looking at a shill.

How to avoid falling prey to crypto shilling?

Before you let someone talk you and your money into a project (no matter how enthusiastic they are) make sure you do the following:

Do your own research (DYOR)

Get the key facts without the subjective buzz. Join different communities and ask questions, check out what other crypto users are saying on social media platforms such as Reddit or X (Twitter). You should also use this opportunity to look into the reputation of the project’s founders and development team. Have they already launched 3 hyped-up failed tokens in the past year. Then perhaps you don’t want to jump in!

Don’t fall for FOMO

Don’t YOLO or FOMO into a project purely because it’s popular. While a project’s trajectory might look enticing, there may be more under the surface. Perhaps it’s a coordinated pump and dump, and the original holders are waiting to dump a soon-worthless token on their unsuspecting victim: you. Alternatively, it could be a straight-up rug pull, with founders draining the project’s liquidity. Worse still, it could be a honeypot scam, meaning that as soon as you invest, you realise you can’t withdraw your funds and nor can anyone else. The project’s deployer is the only one that can access the liquidity and you get scammed along with all of the other victims that FOMO’d in.

A trusted name can’t always be trusted

Fame and celebrity status does not equate to true insight. Following your favorite influencer into a project blindly is usually a mistake. While you may be enamoured with a sports legend or pop queen: do they actually know anything about cryptocurrencies? Countless celebrities have (perhaps naively) allowed crypto projects to use their fame to sell crypto tokens or coins. Of course, these paid celebrities make their endorsements, and probably never think of the project again. When their fans jump in, the job is done. Sometimes, celebrities don’t mind a scammer using their audience, or maybe they are just not aware. Either way, you should always exercise caution if you see a celebrity endorsement on a crypto project.

Approaching crypto with comprehension

The best way to avoid any scam, including crypto shilling, is simple: knowledge. With the right knowledge, you can equip yourself for anything a scammer can send your way. Believe it or not, understanding shilling is just the beginning. Bad actors have countless scams up their sleeves, from rug pulls to impersonation scams and much much more. To be prepared, make sure you check out the full article on the most common crypto scams. But above all, the best thing you can do is to stay vigilant, do your own research, and verify every transaction before you click sign.

 

Degen Trading

In the ever-evolving landscape of financial markets, a new term has emerged that captures the essence of high-risk, high-reward trading strategies: degen trading. This glossary entry aims to explore the intricacies of degen trading, by dissecting its components, risks, and potential impacts on the broader financial ecosystem.

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Understanding Degen Trading

Degen trading, short for "degenerate trading," refers to a style of financial trading characterised by extremely high risk and speculative strategies. Often associated with the cryptocurrency markets, this approach has gained notoriety for its potential to yield significant returns, albeit accompanied by a heightened risk of substantial losses.

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The Origins of Degen Trading

The term "degen" itself is borrowed from gambling vernacular, where "degenerate" gamblers are known for their reckless betting habits. In the context of finance, degen trading has become synonymous with traders who employ aggressive strategies, frequently leveraging their positions to maximise potential gains. This method of trading is particularly prevalent within the cryptocurrency sector, where market volatility can be exploited for substantial profits.

Despite its gambling connotations, degen trading has attracted a diverse following, ranging from individual retail traders to more sophisticated participants within the financial ecosystem. The allure of rapid gains, especially in a market as volatile as cryptocurrency, has proven irresistible to many, despite the inherent risks.

Risks and Rewards

The high-risk nature of degen trading cannot be overstated. Traders often engage in leveraged positions, where borrowed funds are used to increase the size of a trade, amplifying both potential returns and losses. Such strategies can lead to significant financial gains in a short period but also expose traders to the risk of equally swift and substantial losses.

Moreover, the speculative basis of degen trading means that decisions are often made based on short-term price movements rather than long-term fundamentals. This approach can lead to a highly volatile trading environment, where the potential for reward is matched by the risk of sudden and severe financial downturns.

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The Impact of Degen Trading on Financial Markets

While degen trading is primarily associated with the cryptocurrency markets, its influence extends beyond, affecting perceptions and behaviours within the broader financial landscape. The phenomenon raises questions about market stability, investor protection, and the role of regulation in speculative trading practices.

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Market Volatility and Stability

Degen trading contributes to increased volatility in financial markets, particularly within the cryptocurrency sector. The aggressive trading strategies employed by degens can lead to rapid price swings, impacting market stability and investor confidence. This volatility is a double-edged sword, offering opportunities for significant gains while posing challenges for risk management and market regulation.

Regulatory Considerations

The rise of degen trading has also prompted discussions around the need for regulatory oversight. In the UK, financial authorities are increasingly focused on protecting investors and ensuring market integrity, particularly in the rapidly evolving cryptocurrency space. The challenge lies in balancing the need for regulation with the desire to foster innovation and growth within the financial sector.

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Market Trends and Analysis

Examining the current market trends in degen trading reveals a complex landscape shaped by a range of factors. The interplay between technological advancements, regulatory changes, and investor sentiment creates a dynamic environment where opportunities and risks coexist.

One notable trend is the increasing institutional interest in degen trading. Traditional financial institutions, such as hedge funds and investment banks, are exploring ways to incorporate degen strategies into their portfolios, attracted by the potential for high returns. This institutional involvement brings a new level of sophistication and liquidity to the degen trading space but also introduces additional complexities and risks.

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Technological Innovations

Technological advancements play a crucial role in shaping the landscape of degen trading. Automated trading algorithms, artificial intelligence, and blockchain technology have revolutionised the way trades are executed and monitored, enabling faster decision-making and greater market efficiency.

Algorithmic trading, in particular, has become increasingly prevalent in degen trading, allowing traders to execute complex strategies at speeds beyond human capability. These algorithms can analyse vast amounts of data, identify trading opportunities, and execute trades with precision, all in a matter of milliseconds.

Global Market Dynamics

The interconnected nature of global financial markets has a significant impact on degen trading. Market events in one region can trigger cascading effects across multiple asset classes and geographies, amplifying volatility and creating both challenges and opportunities for degen traders.

Geopolitical tensions, economic indicators, and regulatory changes all contribute to the intricate web of global market dynamics that degen traders must navigate. Understanding these interconnections and their potential implications is essential for devising effective trading strategies and managing risk in a rapidly changing environment.

 

WHAT IS DEGEN?

Degen Meaning..

In the context of the crypto community, “degen” is short for “degenerate” and is often used to refer to a person who is involved in high-risk, speculative trading or investing in cryptocurrencies.

What is a Degen in Crypto?

The origin of the term “degen” can be linked to sports betting, where it was used as a shortened form of “degenerate”. Typically used as a derogatory term, it refers to bettors who place large sums of money without the necessary knowledge or expertise to support their bets.

“Degen” is a shorthand term used in the world of cryptocurrency to describe traders who engage in risky, speculative behavior without conducting proper research and due diligence. They are referred to as those who do not pay attention to metrics, tokenomics, fundamental analysis, or technical analysis, and may make buying decisions based on superficial factors like an asset’s logo or a catchy slogan.

Despite its negative connotations, the term “degen” has been adopted by many in the crypto community as a badge of honor, indicating a willingness to take risks and embrace the industry. They are known to be typically committed to the projects and communities they invest in.

Despite the potential for losses, degens are often seen as passionate and committed members of the crypto community. They may contribute to projects through active participation, offering ideas, feedback, and support to help build up communities.

 

What Does Get REKT Mean?

There’s a crypto term for everything, including ways to express happiness, greetings, sadness, excitement, and dismay. Interestingly, as the bear market has developed, a term came out to express how traders and investors lose money off bad decisions — called REKT.

REKT Meaning

Getting REKT means getting financially destroyed in a specific trade or investment. It can differ in the amount of money being lost, but it always connotes losing a large sum of money on a very speculative gamble that’s usually highly leveraged. In summary, get rekt means losing a significant amount of money in a bad crypto trade or during volatile bear markets.

For example, “I was long LUNA and then I get REKT when UST lost its peg and collapsed.”

Get REKT Meme

Anyone can make a meme out of getting rekt, whether it be saying a good online comeback or commenting on Twitter, or proving someone wrong in a debate, however, the main application of memes around getting rekt is with crypto investors or institutions making bad business decisions and Ponzi schemes being exploited. Recently the best example of people using a get rekt meme online is with the FTT scenario, where the exchange token is being exploited for its Ponzi economics and over-leveraged issuers.

At the moment, wallets connected to Alameda Research and the FTX exchange are dumping their Bitcoin, Solana, BIT, and USDC in an effort to prop up the value of FTT and to service withdrawals. However, there’s so much spot and short selling that FTT is unable to hold up a market-supported price, and the exchange is witnessing a massive bank run, almost up to $1 billion being taken off the books.

As a result, Solana is down 14% and FTT is down over 20%. So effectively, when these situations occur, similar to the LUNA fiasco, we say “X is getting REKT.”

What Are The Most Popular REKT Crypto Situations?

In 2022, getting rekt is a daily or weekly occurrence. It started off when Terra Luna crashed, it continued when Three Arrows Capital went bankrupt, was followed by the Celsius Network’s bankruptcy, and now continues with solvency issues with Alameda Research. However, this is from the institutinoal side, many individual traders have also gotten rekt throughout the current bear market.

For example, during the Squid Token crash, a live streamer went viral for his screaming reaction to the coin’s demise — and a similar occurrence happened to a group of Korean live streamers who lost over $100,000 in under a minute.

How To Avoid Getting REKT In Crypto?

It’s often over-repeated to the point it sounds cliche, but the easiest way for crypto traders and investors to avoid getting rekt is first by investing only in assets that you assess as having value and adding value to the blockchain and Web3 ecosystems. Moreover, do so while being careful about leverage and margin, and not over-doing leverage when going long or short on trades that you really care about.

 

What is a Degen in Crypto?

With over 617 million identity-verified crypto wallets, according to Statista, the cryptocurrency ecosystem can feel like its own universe. It is filled with jargon, memes, and slang that sometimes make it hard to keep up. From NFTs to DeFi and now Web3, new terms pop up almost daily. Among the words you’ve probably seen floating around is degen.

The term degen is an old one, but it’s taken on new significance in crypto circles. If you’re trying to dive deeper into this ecosystem, understanding what degen means will help you understand blockchain technology’s lingo and culture.

Let’s break down degen: meaning, origins and how to use it in Web3.

Degen Meaning

Degen is short for degenerate. The term originally comes from gambling culture, where it was used to describe people who behaved recklessly at casinos or poker tables. For example, Gus Hansen, a Danish professional poker player known for his aggressive playing style and numerous high-stakes poker games, is often referred to as a degen.

Degen Meaning in Sport

Later on, the crossover between gambling and sports led to the word degen describing athletes who damaged their careers by making nefarious wagers. A notable example is Michael Jordan, who was rumored to have placed bets on various sports, including his own games, leading to concerns about the integrity of the sport. This contributed to his image as a degen in some circles.

In the same spirit, degens in crypto are known for making bold moves that can lead to massive returns or complete losses.

Crypto Degen Meaning

In the crypto community, it’s used playfully to describe someone whose main mission is speculating on coins and tokens, often with little research or caution. Instead of making decisions based on careful analysis, degens might buy into a project on impulse, hoping to hit the jackpot. Think of it like gambling: you’re going all-in with the chance of winning or losing it all.

Being called a degen isn’t necessarily an insult in crypto. In fact, it can even be a badge of honor in some cases. It means you’re parts of a high-risk, high-reward community that isn’t for the faint-hearted. Degens are usually those who jump into projects early, well before they gain mainstream recognition. They’re often ahead of the curve, willing to explore the newest, most speculative ventures in crypto.

Qualities associated with a degen include:

• High-risk tolerance: Degens are willing to risk losing everything in the hope of massive rewards.
• Fearless: They dive into projects with little hesitation, often ignoring traditional financial wisdom.
• Curious: Degens spend time sourcing new projects, understanding their mission or interesting elements, and talking about these to others.
• FOMO prone: Every new project is a potential moonshot crypto to degens, and this can lead to fear of missing out on new opportunities.
• A sense of community: Despite the risky nature of their behavior, many degens feel a strong sense of belonging to the crypto community, where taking risks is often admired.

It’s important to note that while some degens strike gold, many others experience devastating losses. That’s part of the game — crypto can be highly volatile.

Crypto Degen Explained

In the context of crypto, a degen goes beyond just taking risks. It’s about adopting a mindset that embraces the market’s chaos and unpredictability. While traditional investors may rely on careful analysis, market data, and financial models, degens go the other way. They rely on instinct, trends, and sometimes even pure FOMO (fear of missing out).

For example, degens are often the first to jump into new decentralized finance (DeFi) protocols or buy into obscure NFT collections. They thrive in fast-paced environments like crypto, where fortunes can change instantly. To be a degen is to accept the high risks of a largely unregulated market and the belief that fortunes favor the bold.

Crypto Degen Examples

Here are a few examples of how degens might operate:

• Buying into a meme coin during a hype cycle
  Example: “I knew it was a gamble, but I went full degen and bought that meme coin everyone was talking about on Twitter.”
  Context: Here, the person admits to making an impulsive decision to buy a meme coin based on social media hype, without considering the risks involved.
• Participating in yield farming on a new, untested DeFi platform
  Example: “I became a degen overnight, staking all my funds in that new yield farm with insane APY.”
  Context: The person acknowledges jumping into a new decentralized finance project with high returns but recognizes the risks, as the platform is new and unproven.
• Spending a significant amount of money on a barely-known NFT collection
  Example: “I couldn’t resist; I aped into that obscure NFT collection, feeling like a true degen.”
  Context: The individual buys into an unknown NFT project on a whim, hoping for potential future gains, a common behavior among degens who chase speculative opportunities.

A Brief History of Crypto Slang

Like degen, many other slang terms have evolved to fit the unique culture of blockchain and digital assets. These terms serve as shorthand, building a sense of community among people who are deeply involved in the space.

Terms like HODL (hold on for dear life) and moon (massive price increase)express their optimism — or despair — about the market. As more people entered the space, new slang words emerged, cementing themselves as part of the community’s culture. With new generations and meme references cropping up daily, you should expect more crypto terms

Other Degen Terms

Let’s explore some additional terms you’ll frequently encounter among degen communities:

• OG: Refers to original gangster or someone who has been around since the early days of a particular crypto project or blockchain technology.
• Example: “He’s an OG in the Ethereum community, been here since the ICO.”
• GM: Short for good morning, this greeting has become a symbol of the community spirit in crypto. It’s commonly seen on Twitter and Discord daily as people greet each other in the community.
• Example: “GM fam! Ready for another day in the wild world of crypto.”
• Fren: A playful way of saying “friend.” It’s often used to show camaraderie and goodwill within the crypto community.
• Example: “Hey fren, did you see the latest token launch?”
• Rekt: This term means “wrecked,” and it’s used when someone loses a lot of money on a trade or investment.
• Example: “I got rekt buying that altcoin. It’s down 80% in a week.”
• Ape in: This term describes jumping into a crypto investment without much research, often driven by hype or FOMO.
• Example: “I aped into that new NFT project after seeing all the buzz on Twitter.”

Closing Thoughts

As Web3 — an internet built on decentralized protocols — gains momentum, degens are becoming increasingly important in driving innovation. Many Web3 projects rely on early degen adopters to create momentum, build a community, and provide the initial liquidity needed for the project to succeed. Degens’ willingness to take risks means they often participate in the most experimental parts of Web3, testing new technologies, financial products, and decentralized applications (dApps) that traditional investors might shy away from.

Of course, there’s always a downside. The projects that degens bet on don’t always pan out. Some disappear into thin air, while others fall victim to hacks or scams. It’s a risky game, but the potential rewards are worth it for many degens.

While not everyone in crypto is a degen, understanding this subculture can give you valuable insights into the broader market trends and attitudes that shape the space. Whether you’re just starting out or are already familiar with crypto, keeping an eye on what degens are up to can provide a unique window into where the next big opportunities — or pitfalls — might lie.