Investigation Report: DegenAI (1:23121)
Summary
Verdict: 🟡 Yellow (77/100)
DegenAI is an AI-powered trading agent specializing in HyperLiquid perpetual futures, launched on the Virtuals.io platform with token $DGENAI. The agent demonstrates genuine functionality and significant market presence.
Registration Analysis
Full ERC-8004 v1 registration with rich metadata:
- Name: DegenAI
- Description: AI-powered trading agent for HyperLiquid perpetual futures
- Services: A2A (via ACP v2 on Virtuals protocol), x402 HTTP API
- Capabilities: 6 defined (trade history, account summary, available assets, open orders, HyperLiquid orders, positions)
- Chains: Arbitrum, Base, MegaETH
- Protocols: HyperLiquid, ACP-v2, x402
- Pricing: Free reads, $0.10+ bps for trades
- Trust: Reputation and escrow supported
Registration is among the most complete seen — detailed capabilities, pricing, multi-chain support.
On-Chain Analysis
- Owner: 0xcd1b...0E8 (13 transactions, ~0.028 ETH balance)
- Chain: Ethereum mainnet
- Existing feedback: 0 (no ERC-8004 reputation entries)
- Assessment: Modest but real on-chain presence. Owner wallet is not heavily active, suggesting a dedicated registration wallet rather than a primary operational wallet.
Social & Web Presence
- X/Twitter: @DegenAI_0x — active account with engagement
- Website: https://degenai.dev — live, real content, not a placeholder
- Litepaper: Detailed technical documentation at /litepaper
- Forbes: Listed on Forbes Crypto Market Data
- Coinbase: Listed on Coinbase price tracker
- Virtuals.io: Listed as agent #15500
- Multi-platform: Terminal, Discord, Telegram, X DMs, XMTP access points
Excellent social footprint. Real project with real community.
Service Verification
- x402 endpoint (https://degenai.dev/x402): Responds with 405 (method-specific, behind Cloudflare) — live and protected
- Docs endpoint (https://degenai.dev/erc8004): Responds with 405 — active
- Logo: Serves correctly (1.4MB PNG)
- A2A endpoint (virtuals://degenai): Uses Virtuals protocol — cannot independently verify from outside the platform
- Infrastructure: Cloudflare-protected, proper security headers (no-store, DENY frame, nosniff)
Red Flags
- None significant. No scam indicators, fake social accounts, or suspicious wallet patterns.
- Minor: "Degen" branding is provocative but the substance backs it up.
Green Flags
- Detailed litepaper with technical depth
- Multiple access channels (Terminal, Discord, Telegram, X DMs)
- Revenue model (buyback + burn for token holders)
- Forbes and Coinbase recognition
- Live endpoints with proper security
- Rich ERC-8004 registration
Scoring Breakdown
| Category | Score | Max | Notes |
|---|---|---|---|
| Registration Quality | 13 | 15 | Thorough, missing linked socials |
| On-Chain Activity | 12 | 20 | 13 txs, modest balance |
| Social Presence | 14 | 15 | Forbes, Coinbase, active X |
| Service Verification | 16 | 20 | Live endpoints, A2A unverifiable |
| Reputation Signals | 8 | 15 | No existing feedback |
| Red Flag Absence | 14 | 15 | Clean |
| Total | 77 | 100 |
Verdict
🟡 Yellow (77) — DegenAI is a legitimate, well-built trading agent with strong social presence and live infrastructure. It falls just below green due to limited on-chain history from the owner wallet and no independent trust ratings. As the agent accumulates reputation and on-chain history, it could easily move to green.