The crypto space is rich in lingo that originates from misspelled or mispronounced words, such as HODL, BUIDL, and rekt. Find out what the latter term means below!
What Is Rekt?
Rekt is a slang term that derives from the word “wrecked”. It is often used in the context of cryptocurrency trading to describe a situation where a user has suffered significant financial losses.
What You Need To Know About Rekt
The term “rekt” is often used when someone makes a bad investment decision or participates in an unprofitable trade.
For instance, suppose someone is trading on margin and opens a large leveraged long position. If the market goes down, causing them to be liquidated, we could say that they got rekt.
This slang term can also be used to describe a crypto asset that has lost a lot in value or a market that has dropped dramatically, as in “this coin is rekt” or “the market is rekt“.
Another example of a situation where the word “rekt” could be appropriate is when a person invests a big sum in a crypto token through an ICO but the token ends up trading at a substantially lower price than they paid during the crowd sale. In this scenario the token gets rekt, and so do the investors who chose to contribute to this project.
You are most likely to hear about bagholders getting rekt fairly often. These are investors who continue holding crypto assets even after their value has decreased significantly in hopes that they will eventually recover, which doesn’t always happen.
Note that a similar rekt definition is also applicable in the online gaming community, where the first use cases of this term were recorded around 2010. It is used as a means to describe a player or team that gets defeated in an embarrassing or silly way.
