Recently, Racso, a 24-year-old Austin, Texas-based Vedic astrologer, revealed an astounding tale on the financial podcast “Financial Audit.” Even though he was able to successfully transform a $40,000 investment into an outstanding $440,000, his wild ride in the cryptocurrency market culminated in a catastrophic crash that left him severely underfunded and forced him to use credit cards to support his lifestyle.

Going from “Half-a-Million” to Bankrupt

2020 saw Racso enter the cryptocurrency space with a $40,000 initial investment. He was able to turn this sum into an amazing $440,000 by day trading. But because he was using enormous leverage—up to 17 times his equity—his prosperity was fleeting. Although this may seem excessive by traditional measures, platforms in the bitcoin space frequently provide leverage ratios as high as 125.

The Demise and the Assigning of Blame

The collapse of the cryptocurrency Terra/Luna and the trading platform FTX in 2022 marked a turning point for Racso. Based on Vedic astrology, which prioritizes karma over personality attributes, Racso explained his tragedy by attributing it to the “eclipse of Taurus and Scorpio.” Though it may sound strange, this cosmic explanation emphasizes the psychological and emotional toll that these losses may have on people.

According to estimates from the Bank for International Settlements (BIS), the Terra/Luna project’s failure destroyed about $450 billion in market value, while FTX’s bankruptcy destroyed an additional $200 billion. Racso lost a startling 70% of his assets as a result of heavily leveraged investments.

Having Credit Card Debt to Support Yourself

Now in desperate financial circumstances, Racso acknowledged to host Hammer on “Financial Audit” that he uses credit cards to pay for his everyday costs. Racso is determined not to take a traditional job, even if things are dire for him, and only considers it as a last option. Host Hammer was irate, saying, “This is the angriest I’ve ever been,” emphasizing how dire Racso’s situation was.

Lesson Learned

The narrative of Racso serves as a warning about the dangers of using too much leverage in the erratic cryptocurrency market. Even though trading cryptocurrencies can be very profitable, it is important for investors to proceed cautiously and have a realistic grasp of the possible outcomes. The circumstances behind Racso’s financial collapse highlight the value of risk management and financial literacy, and they implore others to take note of his lessons rather than making the same mistakes twice.

The gripping tale of Racso, the 24-year-old astrologer who lost $440,000 in a single day of cryptocurrency trading and is currently living off of credit card debt, highlights the erratic nature of the market for cryptocurrencies as well as the dangers of using excessive leverage. Stories like Racso’s highlight the need of cautious investing and the significance of comprehending the market dynamics before jumping in as the cryptocurrency sector continues to change.