REKT in the crypto community refers to someone who has experienced a heavy financial loss due to a wrong trade or investment. For instance, let’s say Jimmy is trading margin and invests more than half his savings on Ethereum due to the anticipation of the merge. And a week later, the price of Ethereum nosedived to less than 20% of the previous week’s value due to skeptics doubtful of the success of the Ethereum merge. In this case, Jimmy has gotten REKT.
In addition, the word REKT can also refer to a digital asset itself that loses value. In the above example with Jimmy, it can be said that Ethereum got rekt. So, rekt is often used to describe someone that got liquidated after losing a high-leveraged trade.
It needs to be noted that being REKT and truly losing money are different things since rekt assets can still bounce back. In early 2018, BTC was rekt, yet near the end of 2020, not only did it bounce back, but it also reached a new all-time high.
The slang may also describe an asset that lost too much of its value or a market that dropped significantly (e.g., “this coin is rekt,” or “the market is rekt”). Taking another example, imagine that Jimmy made a heavy investment on a cryptocurrency token through an ICO. But when the token finally hit the market, they were trading at a much lower price than Jimmy paid during the ICO crowd sale. In such a scenario, we may say that the token got rekt, which resulted in Jimmy getting rekt as well.
Within the online gaming community, the term rekt is usually describing a player (or team) that was defeated in an embarrassing or silly way. Or someone that is losing very badly in a competition.
