Trader Gets Six-Figure Loan to Buy Crypto, Holdings Drop by 85%
An Abu Dhabi-based cryptocurrency investor has shared his story of having taken out a six-figure loan to finance virtual currency investments only to watch his portfolio lose 85 percent of its value. The investor has shared his story in the hope that it can serve as a lesson to others.
Crypthomie, a Reddit user identifying as a 32-year-old male living in Abu Dhabi, recently posted a photo of his repayment schedulepertaining to a six-figure loan that he took out on the 18th of December, 2017.
The Redditor borrowed 338,000 dirhams (roughly $126,500 USD), with a total outstanding amount of 393,296.80 dirhams ($147,200 USD) including interest from Emirates Islamic Bank. The document outlines a repayment schedule of 8194 dirhams ($3067 USD) monthly until December 14, 2021.
The investor wrote: “Here is my bank installment related to the loan I took to invest in crypto. Still three-and-a-half years to go until I’m freed. Until then, I’m working for nothing and I’m at 85 per cent loss. I hope it gives you a lesson.”
Crypthomie stated that his cryptocurrency portfolio comprised NEO, XLM, ETH, and LTC, in addition to “some shitcoins that lost 95 per cent of their value already.”
Since the 18th of December, NEO has fallen 78% from $75 to the current price of $16.50, and over 91% from its mid-January highs.
XLM appears to have been the best performing of Crypthomie’s investments, dropping by 18% from $0.275 on the 18th of December to $0.225 today. However, XLM has lost 75% from its January high of $0.91.
ETH has fallen by over 60% from $725 on the 18th of December, and by 80% from its all-time high of $1,400 posted at the start of the year. LTC has lost 83% from its December 18 highs of $320 to currently be trading at roughly $55.
Crypthomie described the loan as comprising a “simple loan” that banks give out “almost instantly in UAE,” adding “You can get $100,000 within a few days in your account without much verification.”
“I’m 32 and it was my first speculative investment. I think it’s an age where we’re still unconscious and take a lot of risks if we don’t have big responsibilities like a kid or bills to pay,” he said.
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