Cryptsy was one of those vintage legends. The wild west is a place where cryptocurrencies are rife with legends. Imagine a vibrant market buzzing, with some honest people and others not so honest, shuffling digital coins about like they were money. Imagine an enormous neon sign that flashes the word “Cryptsy”. This chaotic market is now dominated by this sign. Do you think it’s fun? For many, the carnival was a thrill-ride–until it suddenly shut down. View more details.
Cryptsy entered the market in 2013, at a time when Bitcoin was still a fledgling and just starting to grow. At its peak, the platform supported over 200 digital coins, and even the geekiest geek could spend days trading. Many people would speak about it, as if it was “the” place to go. Many people were drawn to its attractive facade, which was accompanied by a wide variety of coins.
But it wasn’t just rainbows and sun. Imagine a rollercoaster on which a loose screw rattles in a threatening manner. The danger was still there, despite the thrilling run. Security vulnerabilities were introduced slowly at first then cascaded. By the year’s end, rumors began to spread about account irregularities. The rumors gained a solid form and spread through the trading communities.
Let’s take a minute to reflect upon our friend and fellow entrepreneur, Paul Vernon. He is also known as Big Vern. Vernon was something of a Pied Piper. With his promises, he enticed traders to buy into the idea of earning freedom. His story as a “problem-solving” entrepreneur hit all of the high notes – until the discordant sounds began to play.
How the disordered symphony erupted. Cryptsy collapsed in 2015 as a result of countless user complaints. Funds vanished as fast as morning dew during a sunny day. In the end, more coins were taken out than brought in. This left only confused traders behind. It’s almost like they woken up to discover that their beloved spaceship had disappeared from the garage.
Vernon Houdinied himself out of view and into the obscurity. His “hack” announcement–that Bitcoin’s ‘thieves,’ stole over 13,000 BTC plus 300,000. LTC- was a huge hit. Vernon didn’t have to do much snapping of his fingers for skepticism to rear its head. Many thought the incident was not due to unseen attacks, but to internal mishaps.
Cryptsy collapsed eventually under the pressure of this tumult. Headlines were flooded with fury as traders banged on metaphorical doorways, telling stories of empty promise and broken dreams. A class-action law suit was inevitably filed in order to get back digital gold or the gold.
Cryptsy has served as a warning to the crypto community. Cryptsy’s crash woke up traders and they began to be more cautious, weighing risks and rewards, before jumping in headfirst into trading pools. This was a major turning point. It served as a warning that not everything that glitters within the cryptosphere is pure gold.
Nowadays, we reflect on Cryptsy nostalgically–sometimes bitter, sometimes humorous, much like reminiscing about past loves. Their saga is a cautionary story, warning crypto-adventurers today to think before jumping aboard the next glittering spaceship promising the moon.
Cryptsy allows you to chat with old friends, who you can learn from. Even if that means learning what *not* you should do.