A trader from the UAE invested $127000 loan funds in cryptocurrency at the peak of prices

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A trader from the UAE invested $127000 loan funds in cryptocurrency at the peak of prices

32-year-old UAE national, was on Reddit under the nickname Cryptohomie, shared with other users of the site for its sad history of bad investments in the cryptocurrency.

According to Cryptohomie, he took in Emirates Islamic Bank loan in the amount of 338 000 dirhams ($126 500) and invested the money in cryptocurrencies. His words he also reinforced the picture of the graphic on which it should pay the Bank for 8 194 dirhams ($3 067) per month till 14 Dec 2021. Thus the total amount of debt is 393 296 dirhams ($147 of 200).

According to the document, the loan was issued on 18 December 2017, from which we can conclude that Cryptohomie invested in bitcoin at its peak. Then the market went into decline and today the investment portfolio of the mountain, the trader sank a total of 85%.

“According to the repayment schedule received from the Bank along with the money that was subsequently invested in cryptocurrencies, I have to idle for another three and a half years. Cryptocurrencies, in which I invested, lost value of about 85%,” writes Cryptohomie.

Cryptohomie special attention is drawn to the fact that he didn’t invest in bitcoin, which lost about 70% of its value relative to the December high, and in such coins as NEO, sagging 90%, Stellar – 75%, Litecoin – 85%, Ethereum – 80% “and sidony that have fallen in value by 95%”. The total capitalization of the cryptocurrency market today, according to CoinMarketCap, down from $800 billion to $200 billion.

And yet, despite these serious losses, Cryptohomie continues to keep the cryptocurrency. A large part of its investment portfolio consists of cryptocurrency NEO, Ontology, Elastos, Stellar and HPB. The trader explained that for the investment it took in Bank “a conventional loan, which in the UAE can be obtained for a few days without much verification”.

Reddit users responded differently to the story Cryptohomie. Someone sympathized with him and did not aggravate the situation quips: “I don’t think we can say something about what you have not thought before going to sleep.”

Others agreed that it was thanks to such investors, as Cryptohomie who tried at the last moment to jump into the departing train, the market could reach its historic highs: “So that’s why we got to $20 000”.

Some found the situation of the trader visual evidence that in the beginning of the year banks are very timely to forbid its customers to use borrowed funds to buy cryptocurrency:

“After the cryptocurrency market has reached its peak, I kept thinking about how much is such situations. I think that the banks will be a large percentage of defaults on such debts”.

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