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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 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 our community members are facing.
These fraudulent activities not only cause financial harm but also undermine the credibility of the entire cryptocurrency sector.
Moving forward uilding real value
I wholeheartedly agree with the founder and former CEO of Binance, who posted on X,
“I’m not against memes, but memecoins are getting ‘a bit’ weird now. Let’s build real applications with blockchain.”
It’s time for the crypto community to refocus on creating tangible value and sustainable projects.
To achieve this, we must do the following.
- Prioritize education and encourage due diligence among investors
- Develop and implement stronger security measures to protect users
- Support projects that offer real benefits and long-term value
In conclusion, while the degen phenomenon has contributed to crypto’s rapid growth, it’s critical to address the risks and challenges that come with it.
By shifting our focus to building real applications and fostering a culture of responsibility, we can ensure a more stable and prosperous future for the cryptocurrency ecosystem.
Valeriy Yasakov is the CEO of both Kattana.io and the One, a mini app on Telegram designed for crypto trading. A visionary entrepreneur, Valeriy combines technical expertise with strategic foresight to drive advances in decentralized financial and trading solutions through his leadership roles.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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