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As someone passionate about the cryptocurrency ecosystem, I have observed the rapid evolution of the cryptocurrency landscape, particularly the rise of “degen” and its impact on market dynamics.
While Degen has undoubtedly contributed to the growth and awareness of cryptocurrencies, his actions also pose significant risks.
The rapid changes in the nature of degen culture and the proliferation of scam projects targeting this audience require a critical examination of the sustainability and integrity of the cryptocurrency ecosystem.
Degenerative phenomena and their effects
Degens, short for “degenerates”, is a powerhouse in the world of cryptocurrencies.
These risk takers are fueling the growth of meme coins and speculative projects, pursuing high reward opportunities with little regard for potential losses.
The global cryptocurrency user base has exploded from 106 million in January 2021 to over 617 million verified cryptocurrency wallets by June 2024, and this expansion degens play an important role.
But this degen mentality has also created a breeding ground for scammers and fraudulent projects.
A recent investigation by blockchain researcher ZachXBT into the activities of former professional Fortnite player “Serpent” reveals the dark side of this phenomenon.
The Serpent’s Story – A Cryptocurrency Scam Case Study
ZachXBT's investigation uncovered a complex fraud allegedly orchestrated by Serpent that resulted in the theft of approximately $3.5 million in memecoin fraud.
This plan included:
Compromising famous social media accounts on X and Instagram, including McDonald's, Usher, Andy Ailey, Dean Norris, Enoshima Aquarium, etc. Platforms like Pump.fun promoting fraudulent meme coins through these hacked accounts Steal stolen funds at online casinos by running a pump-and-dump scheme
This case is an example of how fraudsters exploit the risk appetite and quick profits of the degen culture, often leaving investors with large losses.
The prevalence of such scams is extremely worrying. Many cryptocurrency founders have abandoned their projects after the initial hype, leaving investors with worthless tokens.
This pattern of behavior undermines trust in the cryptocurrency space and inhibits legitimate innovation.
As someone deeply immersed in the world of cryptocurrencies, I am extremely disappointed in the amount of fraud faced by members of the community.
These fraudulent activities not only cause financial damage but also undermine the credibility of the entire crypto sector.
Moving forward – building real value
I wholeheartedly agree with the founder and former CEO of Binance who posted on X.
“I'm not against memes, but meme coins are getting a little weird right now. Build real-world applications using blockchain. ”
It is time for the cryptocurrency community to refocus on creating tangible value and sustainable projects.
To achieve this you need to do the following:
Prioritize education and encourage due diligence among investors Develop and implement stronger security measures to protect users Support projects that provide real benefits and long-term value
In conclusion, although the degeneration phenomenon has contributed to the rapid growth of cryptocurrencies, it is important to address the risks and challenges associated 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 crypto ecosystem.
Valeriy Yasakov is the CEO of both Kattana.io and One, Telegram's mini-app designed for crypto trading. A visionary entrepreneur, Valerie combines technical expertise and strategic foresight to drive advancements in decentralized finance and trading solutions through her leadership roles.
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