Cryptsy, a vintage legend from the wild west of crypto currencies, is one. Imagine a bustling bazaar full of people, some honest and some shady. They all shuffle digital coins around like they are monopoly currency. Imagine a huge neon sign flashing “Cryptsy”, above the chaos of this market. Sounds fun? It was an exciting ride for many until the carnival closed unexpectedly. Read more here.
Cryptsy was launched in 2013, just as Bitcoin was breaking out of its shell. It was capable of handling over 200 digital currencies at its peak. Even the most geeky geek could get lost in trading coins for days. People would talk about it as if it were the place to be. Many were lured in by its user-friendly façade and enticing selection of coins.
The glittering currency was not all rainbows and sunshine. Imagine a rollercoaster with an ominous loose bolt. Despite the thrill of the ride, danger was lurking. Slowly, security vulnerabilities began to appear, and then they cascaded. By the end 2014, rumors about account irregularities spread like wildfire. The rumors became more concrete and were heard in trading communities.
We should pause and reflect on the life of our friend Paul Vernon aka “Big Vern”. He was a man of mystery, but also a man of tenacity. Vernon was like a Pied Piper. He enticed traders with his promises and waved the flag of freedom. His story of the “problem-solving businessman” was a success, until the discordant music began.
Oh, what a symphony! Cryptsy was knocked out of business in 2015 due to a slew of user complaints. The funds disappeared faster than morning dew in a sunny afternoon. The traders were left confused as more coins exited the building than they entered. Like they woke to discover their beloved spaceship missing in the garage.
Vernon Houdini’d his way into obscurity and out of sight. His infamous “hack”, in which he claimed that Bitcoin ‘thieves filched’ over 13,000 BTC, and 300,000. LTC, turned heads. Vernon’s fingers could not snap fast enough to stop the skepticism. Many believed it wasn’t foul play from unseen attackers, but internal mishaps or worse fraud.
Cryptsy eventually crumbled in the midst of its turmoil. The headlines were filled with anger, describing stories of broken promises and empty promises. Traders banged on the doors metaphorically. It was inevitable that a class-action suit would be filed to recover the digital gold and seek justice.
Cryptsy was a wake-up, a shock to the crypto eco system. Cryptsy’s collapse woke up traders, who began to scrutinize exchanges more carefully, weighing risk and reward, before jumping headlong into trading pool. It was a pivotal moment, a bellwether that sent a powerful message: not everything in the cryptosphere glitters.
Nowadays, we reflect on Cryptsy nostalgically–sometimes bitter, sometimes humorous, much like reminiscing about past loves. The story of Cryptsy is a cautionary one, warning today’s cryptoadventurers not to jump on the next rocket ship that promises the moon.
If you ever want to go down memory lane digitally, Cryptsy is like a chat with a good friend. You can learn a lot from them, even if they teach you what not to do.