Cryptsy belongs to the vintage legends of the wild west era of cryptocurrencies. Imagine a bustling market, full of people, both honest and shady. Everyone is fumbling with digital coins, as though they were monopoly. Imagine a giant neon sign reading “Cryptsy,” flashing above a chaotic market. Fun? It was a fun ride, but then the carnival suddenly closed. See how.
Cryptsy first appeared in 2013 when Bitcoin had just begun to emerge from its shell. At its peak it supported more than 200 digital currencies. This allowed even the geekiest geek to spend days trading coins. The “it” spot for people to be, it would be whispered about. Its friendly facade and the variety of coins it offered lured many in.
The currency ride, while glittering and beautiful, wasn’t all rainbows. Imagine a roller coaster where a loose nut rattles ominously. Although it was a thrilling ride, danger still loomed. Slowly at first and then rapidly, security vulnerabilities started to creep in. The whispers of account irregularities were spreading like wildfire by the end 2014. The rumors were echoed in the trading community.
As we pause to reflect, let’s think about our entrepreneurial friend Paul Vernon, also known as “Big Vern”. After parachuting into his role as CEO, Vernon was a mix of tenacity with mystery. Vernon was a Pied Piper who lured traders into his trap with his promises. His flag of freedom was waving. His “problem solving entrepreneur” narrative hit all the high-notes–until discordant melodies started to play.
Oh, the chaos that erupted was a symphony. Cryptsy’s popularity was shattered in 2015 by a flood of complaints. Money disappeared faster than dew on a sunny, morning day. There were more coins leaving the premises than entering, and only confused traders remained behind. It’s as if they woke up one morning to find that their spaceship was missing.
Vernon Houdinied himself out of the public eye and into obscurity. His infamous “hack” statement–that Bitcoin thieves stole over 13,000 BTC as well as 300,000 LTC turned heads. Vernon snapped his fingers, but skepticism was there before he could. Many people believed that the perpetrators were not unknown, but instead internal mishaps.
Cryptsy was eventually swept away by the turmoil. The news was filled with stories of empty dreams and broken promises. Traders were banging on their metaphorical doors. Unavoidably, a class-action lawsuit followed to seek justice and recover the gold, or digital currency.
Cryptsy’s fall was an early warning, a jolt for the crypto-ecosystem. Cryptsy’s fall awoke traders who started to look at exchanges more closely, and weighed the risk versus reward before rushing into trading pools. It was a signal, a turning-point, and it sent out a strong message that not all that glitters is gold in the cryptosphere.
Nowadays, we reflect on Cryptsy nostalgically–sometimes bitter, sometimes humorous, much like reminiscing about past loves. Their story remains a cautionary account, teaching crypto-adventurers of today to think twice about hopping aboard the next glittering rocket promising the moon.
Cryptsy will help you to remember the good old days, and even teach you some things.