Financially Ruined (Cryptocurrency Terminology) is what REKT stands for.
In this context, the term REKT means “Financially Ruined”, referring to an investor who has lost everything because the value of their cryptocurrencies dropped.
This is a very commonly used crypto term, and is actually short for wrecked. The word was misspelled intentionally. Despite the fact that the cryptocurrency market is far from predictable, many failures happen even overnight because of this. A trader invests all his money and loses it all due to a poor market trend or incorrect analysis. Crypto trading is when someone is called a rekt. It’s important for you to be aware that cryptocurrency exchanges are online marketplaces where users buy, sell, and trade cryptocurrencies.
In essence, Rekt occurs when crypto traders get caught up in FOMO and end up victimized by pump and dump schemes. It’s rekt for you.
The price of DOGE plummets to less than 50% of its previous value a day later because crypto whales decided to dump and you are now a bag holder. This scenario resulted in REKT.
“Lose badly” is a slang term used in the online gaming world.
Cryptocurrency and blockchain users use rekt to refer to financial losses caused by bad trades or investments. As an example, let’s say Alice is trading on margin and opens an extensive leveraged long position. In a down market, we may say “Alice got rekt.” Hence, rekt can also refer to someone who lost a high-leveraged trade and has been liquidated.
Similarly, slang may describe an asset or a market that is seriously depressed (e.g., “this coin is rekt,” or “the market is rekt”). Another example would be if Bob invested large amounts of money in an initial coin offering. When the tokens finally hit the market, they traded for much less than Bob paid during the crowd sale. Therefore, in this scenario, Bob and all bagholders are rekt as well as the token. A Bitcoin wallet is the preferred way to store REKT.
A REKT is used to describe someone who has lost a large investment when it comes to cryptocurrency trading.
Investing all your money in a new cryptocurrency that seems to grow in price for a few days, but then drops significantly, would be considered REKT.