The Unfolding Saga of Wormhole’s Epic Airdrop and the Trading Strategy of ‘Degens’
In the ever-volatile and thrilling universe of crypto trading, adaptability is fundamental, especially for the breed of traders known as ‘degens’. These thrill-seeking traders are aptly named after ‘degenerate gamblers’, and you’d be hard-pressed to find a more apt comparison. The dizzying highs and profound lows experienced by the degens are indeed reminiscent of a high-stakes poker game. The recent airdrop by Wormhole, a new cross-chain messaging protocol, was an occasion that tantalized degens across the world. Alas, it would also serve as a teachable moment on the risk-reward seesaw in crypto trading.
Recalling the Airdrop and Lost Opportunities: A Chain of Events
On an otherwise calm Wednesday in March 2022, dawn broke with news that would soon be the talk of the town. Wormhole announced its token launch, promising an air-drop to eligible Solana users. If there’s one thing traders get excited about, it’s free money. As such, the anticipation was palpable and the degens, in all their fervor could almost taste the prospective winnings.
Yet, disappointment lay in wait. “People are very upset”, reveals Tim Ogilvie, the CEO of crypto staking infrastructure company Staked, in the aftermath. Majority of the intended recipients saw no tokens. Many took to Twitter to vent their frustrations. There was anger, bewilderment and a shot of unfulfilled promise, almost tangible.
Strategies, Failures, and Successes: The Degen Way of Life
The incident served as a reminder of the trading strategy typical to degens – the practice of chasing airdrops. This strategy is rooted in the idea that these free tokens could be exchanged later for a lucrative profit when their value increases. The Wormhole incident, cruel as it was, served to expose the vulnerabilities associated with this approach.
However, the ‘Degen way’, as it is colloquially known, does not rely only on airdrops. It also includes the use of leverage to increase the potential returns of trading. Arbitrage and ‘Yield Farming’ are other strategies often employed by these risk-takers.
Facing failure is a rite of passage for every degen, and the seasoned traders among them often have a tale or two about lost opportunity. A veteran trader shared her experience of missing out on the Uniswap airdrop in 2020. “I could have been a ‘Uniswap millionaire’, but as they say, ‘easy come, easy go’.”
If there is anything that the Wormhole saga has taught the degens and the larger crypto community, it’s to sometimes temper their fearless pursuit with a dose of realistic expectations. As they continue their restless journey in the turbulent crypto markets, one thing remains clear: The world of degens is indeed a roller-coaster ride, full of exhilaration, despair, gains, and losses. The thrill of the chase continues unabated, regardless of the outcome. After all, isn’t that the epitome of a true ‘degenerate gambler’?
