Crypto Degens On The Rise As Scams Continue To Plague The Industry

Over the last few years, the world has witnessed the rapid evolution of the crypto industry, particularly the rise of degens and their impact on market dynamics. While degens have contributed to the growth and visibility of cryptocurrencies, their behavior also introduces significant risks that deserve careful attention.

The Degen Dilemma

The fast-paced nature of degen culture, combined with the rise of fraudulent projects targeting this audience, calls for a thorough examination of the sustainability and integrity of the crypto ecosystem. Degen, short for degenerates, refers to individuals who chase high-reward opportunities without regard for potential losses.

This mindset has fueled the rise of meme coins and speculative projects. The global crypto user base has surged to over 617 million verified wallets by June 2024, with degens playing a key role in this growth. However, this mentality also creates fertile ground for scammers.

A recent investigation by blockchain researcher ZachXBT into Serpent, a former Fortnite player, uncovered a web of fraudulent activities that resulted in the theft of $3.5 million through meme coin scams. These activities included hacking high-profile social media accounts, promoting fake meme coins, and running pump-and-dump schemes.

The Need For Change

The prevalence of such scams is concerning, as many crypto founders abandon their projects after the initial hype, leaving investors with worthless tokens. This undermines trust in the crypto space and stifles genuine innovation.

Presently, many in the crypto community believe that the focus must shift toward building real value. Changpeng Zhao, the former CEO of Binance, famously stated he is not against memes but that meme coins are getting a bit weird now and that people should instead build real applications with blockchain instead of just fooling around.