What is a Degen in Crypto?

Key takeaways

• Degens are crypto participants who focus on finding new coins and tokens to invest in, hoping for big gains.
• The term degen originated in gambling and now describes impulsive behavior in crypto.
• In Web3, degens engage in meme coin trading, yield farming, and NFT investments.
• Despite the risks, degens play a role in driving innovation and early adoption 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 phrases or words you’ve probably seen floating around is degen.

The term degen is old but has taken on new significance in crypto circles. Understanding it is key to an elaborate comprehension of blockchain’s ecosystem and its jargon.

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

Degen Meaning

Degen is short for degenerate. The term originally came 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 considered 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 cryptocurrency community, it’s used playfully to describe someone whose main mission is speculating on crypto 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.

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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 part 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, some of whom have even emerged as memecoin millionaires after striking gold on viral tokens.

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 spends time sourcing new projects, understanding their mission or interesting elements, and discussing them with 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 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 take a different path. They trust gut instinct, community buzz, and sometimes pure FOMO (fear of missing out). When a new token launches, you’ll often see the chat light up with LFG (Let’s f***** go) as degens dive in.

For example, degens are often the first to jump into new decentralized finance (DeFi) protocols, buy into obscure NFT collections, or try out tap to earn games that grant tokens for simple interactions. They thrive when market conditions change in an instant, where fortunes can be made or lost in seconds. To be a degen is to accept high risks in a largely unregulated market and believe that bold moves can lead to outsized gains.

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 released on Pump.fun. Everyone was talking about on all social media platforms, and the FOMO got to me.”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 memecoin with insane potential.”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 became a degen overnight, staking all my funds in that new memecoin with insane potential, after realizing I had missed similar opportunities before and finally figured out how to buy memecoins without hesitation.”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

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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 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.