The decentralized finance (DeFi) craze has been bordering on insanity lately, with the boom and bust of YAM and other meme projects like Spaghetti Money following suit and gaining tremendous amounts of investments for no apparent reason.
A crypto influencer posted a joke about the DeFi situation, as can be seen below. It was a picture of an app which makes a meme DeFi project in 5 minutes, and people can select an emoji as the project’s brand, and he chose a pineapple.
Notably, ‘the degenerator’ app was not real, but the tweet went viral, and a few hours later someone made a new DeFi project called ‘The Degenerator’ with the trading symbol MEME, and a pineapple was its brand.
Apparently a group of people conducted a brief governance session, and decided that 28,000 tokens would be minted and each person in the Telegram group would receive 355 tokens and the developers got 2,000 tokens.
Even though MEME does nothing, and has no governance beyond that initial meeting, it spiked to a value as high as $117, and still is trading near $75 as of this writing, although it is quickly dropping as MEME HODLERS cash out.
This means people who participated in the MEME Telegram group and got the airdrop potentially made tens of thousands of dollars each, and the developers may have gotten hundreds of thousands of dollars, depending on when they sold.
Ultimately, this is hard proof that the current DeFi frenzy is just as out of control as the initial coin offering (ICO) boom of 2017. Literally this MEME token is based on nothing and has zero function, yet it skyrocketed to a market cap of millions of dollars.
Zooming out, this seems to reveal that the primary thing driving the DeFi craze is rampant speculation, and it’s looking more and more like a casino than a legitimate financial market.
On a final note, people are launching numerous meme-based DeFi projects right now in the hopes of striking it rich, and the success of the MEME token is only emboldening these sort of fraudulent and baseless DeFi projects.