Degen

Psychology of Investors: Why Degen Tokens Attract Risk Takers.

Degen tokens attract risk-takers due to their high-reward potential and the thrill of speculation. Many investors are driven by FOMO (Fear of Missing Out), hoping to replicate the success of early adopters in projects like Dogecoin or Shiba Inu. The appeal of instant wealth aligns with a gambling mindset, where risk is seen as part of the excitement. Community-driven hype, fueled by memes and influencers, creates a sense of belonging and urgency. Additionally, younger, tech-savvy investors are more inclined to embrace volatile, experimental tokens. The psychology of chasing quick gains often outweighs concerns about long-term utility or stability.