| Term | Crypto Degens |
| Impact | Played a major role in the massive growth of cryptocurrencies • Blamed for contributing to significant market crashes and instability |
| Subculture | Unique memes • Online communities • Influence over the broader crypto ecosystem |
| Description | A subculture of highly speculative, risk-tolerant cryptocurrency traders and investors who emerged in the 2010s and 2020s |
| Characteristics | Aggressive trading tactics • Dismissal of traditional financial norms • Participation in highly volatile crypto markets |
"Crypto Degens" are a subculture of highly speculative cryptocurrency traders and investors that rose to prominence in the volatile crypto markets of the 2010s and 2020s. The term "degen" derives from the slang "degenerate gambler", encapsulating their high-risk, reckless trading behaviors and disregard for traditional financial norms.
Cryptocurrencies like Bitcoin and Ethereum first emerged in the late 2000s, promising radical innovations in finance and technology. As these assets exploded in value throughout the 2010s, a new class of high-risk traders known as "crypto degens" began to emerge.
These speculators were drawn to the extreme volatility and perceived upsides of crypto, often investing life savings or taking on massive leverage in hopes of multiplying their holdings. Dismissive of concepts like "investing for the long-term" or "diversification", crypto degens instead embraced strategies like "YOLO-ing" (putting all assets into one risky bet) and "FOMO-ing in" (rushing to buy an asset that is rapidly rising in price).
The anonymity, 24/7 trading, and meme-driven nature of crypto markets further fueled the rise of this subculture. Crypto degens congregated online in forums like WallStreetBets and developed their own distinct argot, in-jokes, and cultural touchstones.
Key characteristics that define crypto degens include:
Crypto degens have been at the forefront of the rise of trends like GameStop short squeeze, Non-Fungible Tokens (NFTs), decentralized finance (DeFi), and the mainstream adoption of cryptocurrencies. However, their influence has also been blamed for contributing to the extreme volatility and crashes that have plagued crypto markets.
Crypto degens have played an outsized role in the dramatic booms and busts that have characterized the cryptocurrency ecosystem. Their willingness to take on extreme risk and leverage has fueled massive price run-ups, but also leaves markets vulnerable to sudden corrections and crashes.
For example, the meteoric rise of Dogecoin in 2021 was driven in large part by hordes of crypto degens "pumping" the meme-based cryptocurrency. When the bubble inevitably burst, many degens were "rekt" (suffered heavy losses). Similar patterns have played out with other "shitcoins" and speculative crypto trends.
Crypto degens have also been accused of manipulating markets through tactics like "pump and dump" schemes, "short squeezes," and "coordinated FUD" (spreading fear, uncertainty and doubt). This has led to increased regulatory scrutiny of the crypto industry.
Despite the criticism, crypto degens have developed a strong subculture with their own norms, language, and online communities. Platforms like WallStreetBets, Discord, and Crypto Twitter have become hubs for degen trading, memes, and collective celebration/mourning of market outcomes.
Crypto degens often see themselves as rebels fighting against the establishment, with a mantra of "degeneracy or death." They take pride in their willingness to embrace risk and volatility, seeing it as a path to "life-changing gains." Degens have even created their own branded merchandise, NFT projects, and other cultural touchstones.
As cryptocurrencies continue to mature and attract more mainstream adoption, the role and influence of crypto degens remains uncertain. While their speculative fervor has been a major driver of crypto's growth, their impact has also stoked concerns about market manipulation and instability.
Some predict that as crypto becomes more institutionalized, the degen subculture will gradually fade. Others believe that the core ethos of crypto degens - a disruptive, high-risk, meme-driven approach to finance - will remain a persistent force, shaping the evolution of the industry. Ultimately, the future of crypto degens will likely depend on their ability to adapt to an increasingly regulated and professionalized crypto ecosystem.
