A decentralized social media altcoin is in freefall just days after gaining backing from America’s leading cryptocurrency exchange.
New data reveals that social network token DEGEN has fallen from a weekly high of $0.011 to $0.008 since its adoption by Coinbase on October 15, a decline of 27%.
According to the DEGEN website, the digital asset is a reward token for active participants of the decentralized social media platform Farcaster. Additionally, it powers the Degen chain, which is presented as a layer 3 built on Base, the Coinbase blockchain.
“DEGEN is a reward token for Farcaster users, born from meme culture. It uses a unique tipping system that allows the community to reward quality content creators.
It also powers the Degen Chain, one of the pioneering Layer 3s launched on Base, providing a platform for building and using Degen applications, often referred to as the “Las Vegas of blockchains”.
DEGEN, which launched earlier this year in January, has a supply of around 37 billion tokens. According to the project’s website, it is only planned to sell about 70% of the offering to investors.
“At launch, we created around 37 billion tokens, 70% of which were intended for the community! Another 15% has been allocated to form a liquidity pool, and the remaining 15% will support our team, investors and the ecosystem as a whole. Additionally, an inflation rate of 1% is expected to begin in 2028.”
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Featured image: Shutterstock/Yurchanka Siarhei
