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Degen tokens typically exhibit the following characteristics:

High Volatility: Prices can fluctuate dramatically in short periods, attracting speculative traders.

Low Market Cap: Often, they have a small market capitalization, making them more susceptible to manipulation.

Hype-Driven: Their popularity often hinges on social media trends, influencers, or community-driven hype.

Liquidity Issues: They may have low trading volumes, making it difficult to buy or sell without significant price impact.

Anonymous Teams: Many projects are created by anonymous developers, raising concerns about transparency and accountability.

Gimmicky Features: Some may incorporate unusual mechanics, like reward systems or staking, to attract interest.

Speculative Nature: Investors often buy based on potential future gains rather than fundamentals.

Risk of Rug Pulls: There’s a higher risk of scams or “rug pulls” where developers abandon the project after attracting investment.