22-Year-Old Google Employee Suffers Rs 67 Lakh Loss in Cryptocurrency Investment

A 22-year-old software engineer employed at Google, who boasts an investment portfolio exceeding Rs 1 crore in retirement and brokerage accounts, as well as ownership of two houses, recently disclosed a financial setback. He revealed losing approximately Rs 67 lakh due to his involvement in cryptocurrency trading on margin, which essentially means he used borrowed funds to invest in cryptocurrencies.

Ethan Nguonly, hailing from Orange County, California, initiated his stock market ventures with guidance from his parents before he reached his teenage years, as reported by CNBC Make It. However, this journey eventually led to what he now considers his most significant financial blunder.

Ethan explained that he incurred the Rs 67 lakh loss in the world of cryptocurrency between November 2021 and June 2022. This loss comprised Rs 24 lakh from his initial investment and an estimated Rs 41 lakh in potential gains that remained unrealized.

According to Ethan’s account to the publication, he had previously invested around Rs 33 lakh in Bitcoin and Ethereum, in addition to a few hundred dollars in altcoins like Shiba Inu and Dogecoin. However, as Bitcoin’s value declined, he opted to invest an additional Rs 12 lakh, which he borrowed.

Initially, it seemed to be a wise decision, with the young investor seeing his investment grow by approximately Rs 42 lakh as Bitcoin reached its all-time high. Unfortunately, by the end of 2021, the cryptocurrency market took a nosedive, and by the summer of 2022, Bitcoin’s price plummeted by over 70 percent.

Reflecting on his experience, Ethan admitted to CNBC Make It that his primary regret was not the choice to invest in cryptocurrency but rather using borrowed funds for these investments. He stated, “That’s why my losses were significantly amplified.”

At present, while Ethan continues to engage in cryptocurrency investments, he has shifted his focus primarily to Bitcoin and Ethereum, avoiding riskier alternatives.

“I still maintain my belief in cryptocurrencies as a whole,” he conveyed to CNBC Make It. “However, I do consider many of these altcoins to be highly risky and thus, I refrain from allocating any funds towards them.”

When discussing the most significant lesson he learned from his mistake with the publication, Ethan emphasized the importance of “only investing money you have and avoiding highly speculative investments with borrowed funds.”

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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