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

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.