The Role of Degens in the Crypto Horizon – Hype Gains and Scam Losses

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As someone passionate about the crypto ecosystem, I’ve observed the rapid evolution of the cryptocurrency landscape – particularly the rise of ‘degens’ and their impact on market dynamics.

While degens have undoubtedly contributed to the growth and visibility of cryptocurrencies, their behavior also poses significant risks.

The rapidly changing nature of degen culture – coupled with the proliferation of fraud projects targeting this audience – calls for a critical examination of the sustainability and integrity of the crypto ecosystem.

The degen phenomenon and its implications

Degens, short for ‘degenerates,’ have become a driving force in the crypto world.

These risk-takers chase high-reward opportunities with little regard for potential losses, fueling the growth of memecoins and speculative projects.

The global cryptocurrency user base has exploded from 106 million in January 2021 to over 617 million identity-verified crypto wallets by June 2024, with degens playing a significant role in this expansion.

However, the degens mentality has also created fertile ground for scammers and fraudulent projects.

A recent investigation by blockchain investigator ZachXBT into the activities of ‘Serpent,’ a former professional Fortnite player, illustrates the dark side of this phenomenon.

The Serpent saga – a case study in crypto scams

ZachXBT’s investigation uncovered a complex web of fraudulent activity allegedly orchestrated by Serpent that resulted in the theft of approximately $3.5 million through memecoin scams.

The scheme involved the following.

• Compromising high-profile social media accounts on X and Instagram, including those of McDonald’s, Usher, Andy Ayrey, Dean Norris and the Enoshima Aquarium
• Promoting fraudulent memecoins through these hacked accounts
• Running pump-and-dump schemes on platforms such as Pump.fun
• Gambling away the stolen funds in online casinos

This case is an example of how scammers are exploiting the appetite for risk and quick profits in the degen culture, often leaving investors with substantial losses.

The prevalence of such scams is deeply worrying. Numerous crypto founders have abandoned their projects after the initial hype, leaving investors with worthless tokens.

This pattern of behavior undermines trust in the crypto space and stifles legitimate innovation.

As someone immersed in the crypto landscape, I am deeply disappointed by the number of scams…