In the context of NFTs, a degen is someone who is willing to take on a high degree of risk in order to make a profit. They are often attracted to new and innovative projects, even if they are not well-known or have not been thoroughly vetted.
Degens are often willing to invest large sums of money in projects that they believe have the potential to be successful, even if there is a high risk of losing everything.
The term “degen” is short for “degenerate,” which is a term that is often used to describe someone who is obsessed with something or who engages in risky or reckless behavior.
In the context of NFTs, the term “degen” is often used in a playful or self-deprecating way. Degens often embrace the term and wear it as a badge of honor.
Here are some examples of degen behavior in the NFT space:
- Investing in new and unproven projects with high valuations
- Buying NFTs that are purely for speculation, with no intention of using them
- FOMOing into projects that are already pumping
- Investing large sums of money into NFTs without doing any research
Here are top 5 tips How you can find Solid NFT Degen Projects before they fly hard:
1. Monitor High-Volume NFT Degen Projects
It’s essential to track degen projects that have recently been minted, showing substantial volume crossing 50 to 100 ETH, and demonstrating a performance increase of 3x-4x from mint or the secondary market. These projects are usually those that have experienced a significant dump, leading most investors to abandon ship.
However, a resurgence can occur after a three-day period.
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Therefore, it’s crucial to bookmark these high-volume degen projects and monitor them for any potential dips. A slowdown in sales could signal an upcoming spike, making it a project worth keeping an eye on.
2. Identify a Stable Floor Post-Dump
Look for a stable floor price that has managed to hold steady after a dump, e.g., from 0.04 to 0.015. This signals a bullish trend in the degen project as older holders are slowly replaced, and the project hasn’t plummeted to zero but is maintaining stability.
If consistent volume and a stable floor are evident in a high-volume traded project, it may well be a golden opportunity. In 70% of cases, such projects explode, offering potential profits of 3x to 10x in just a few days.
For instance, both Saved Souls and XD33 followed this pattern, achieving 0.01-0.1 within 3-4 days.
3. Practice Selective Investment
Instead of blindly investing in every pumping and dumping degen project, it’s more beneficial to choose projects that follow the patterns described above.
These projects offer better profits with lower risk, as their communities are strengthening during this time.
4. Use WETH Offers for Stable Floors and Slow Volume
When you notice a stable floor and slowed volume, it’s wise to make WETH offers. Either bots or individuals who wish to unload their NFTs will provide you with optimal entry points.
5. Utilize Twitter for High-Volume Traded Degen Projects
Keep an eye on the Twitter accounts of high-volume traded degens to see if they are actively engaging their community, creating a Discord, or taking other steps to keep the project vibrant.
A single piece of good news or announcement can dramatically increase the floor price.
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However, always use such updates to sell your NFTs, not to buy them. Otherwise, those who purchased at the bottom or are trapped may dump on you, potentially leading to losses.
Conclusion
It is important to note that degen behavior is not always a bad thing. In fact, some of the most successful NFT projects were started by degens who were willing to take risks and bet on new ideas.
However, it is also important to be aware of the risks involved in degen behavior, and to only invest money that you can afford to lose.