Ah, Cryptsy. Cryptsy’s name alone brings back memories of the wild-west days of cryptocurrency trading. Cryptsy pioneered cryptocurrency trading in 2013, back when Bitcoin was just a glimmer in the eye of the tech community. Cryptsy was more than a platform. It was a movement. It was a phenomenon. Enthusiasts were drawn to it by the promise of digital trading. Read more here.
I remember Dave, my friend from a previous party, telling me about Cryptsy. He said with eyes that gleamed, “Man, this is something you have to get into.” It’s the stock exchange for crypto. “You can trade any type of coin that you want!” I thought he had a good laugh. Cryptsy, on the other hand, had everything I could imagine from Bitcoins to obscure coins that I’d never even heard of.
At least, that was what people said. I played a little, and threw some spare change in. It was thrilling. It was a good interface. Even in your pajamas, you could easily switch between markets.
But problems started surfacing. Accounts were being hacked. Users reported missing money. Cryptsy logins could feel like a game of chance on some mornings. One morning, I woke up to find a number of angry forum posts. “Where is my money, Vern?” They yelled at the CEO of the platform. One user was so frustrated that he wrote an open-letter parodying the popular song “Baby come back!” Cryptos included.
Vernon Schloss, his enigmatic founder tried to appease everyone. He blamed poor cybersecurity and rogue hackers. Once trust is broken, it’s hard to rebuild. It was like a carton that had turned sour. You couldn’t use the milk again. The problems grew and stories of mismanagement began to emerge. Chaos was the only word to describe it.
Cryptsy once claimed that a hacking incident had cost them millions of dollars in digital assets. The silence that ensued was deafening. Users were left stranded and their investments disappeared into thin air. Not just the money was lost, but also the dreams that were tied to it. Some were making their first crypto investment. It was a baptism of fire.
The number of lawsuits began to increase. Even my cousin got involved, dreaming about courtroom glory. Accountability was more important than the loss. The people demanded answers and wanted to see heads roll. In a Hollywood-style twist, Vernon vanished. Imagine a magician performing with a puff or smoke. One moment, he is there and the next, he is gone!
Cryptsy’s demise is a warning in disguise. This illustrates the nascent nature of cryptocurrency, which is still present to some degree. There are scars, even though there have been advances. Like the old saying “Once bit, twice shy”. I am one of many who are treading carefully. We will not go to a place if it feels wrong.
There are some humorous bits amongst the doom-and-gloom. Cryptsy once decided to reimburse its users using CrypToken, the company’s own coin. People would say “Oh, great! I’ve been crypToked!” It was sort of a coping technique, or a kind of gallows humor.
The crypto-world has seen a revival. New exchanges are popping up and promising better security. Cryptsy is a fond memory for many traders, but they also look back with caution and nostalgia. The hard way was the only way to learn. Some older people wear it as a badge, or a rite-of-passage.
Every industry has legends, heroes and villains. Cryptsy combined all three. It taught us joy, sorrow, and everything between. Next time you hear about the early days of cryptocurrency trading, remember Cryptsy – the high risks, lessons and indelible marks that it left.