The term rekt derives from the word "wrecked." In general, rekt is a slang used to define something that got completely destroyed or a person that experienced a catastrophic failure. However, the term may carry different meanings depending on the context.
In the world of blockchain and cryptocurrencies, rekt is used to describe a severe financial loss, caused by a bad trade or investment. To illustrate, let’s suppose Alice is trading on margin and opens a big leveraged long position. If the market goes down and she gets liquidated
, we may say "Alice got rekt." So, rekt is often used to describe someone that got liquidated after losing a high-leveraged trade.
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 Bob 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 Bob paid during the ICO crowd sale. In such a scenario, we may say that the token got rekt, which resulted in Bob and all bagholders
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. But, the oldest use of the slang is perhaps the one originally found in British English, where rekt was used when referring to a person that got too drunk or messed up.