Cryptsy used to be the star of cryptocurrency trading in its prime. Flashy, alluring and heavily dealt. If you’ve been dabbling with digital coins from 2013 to 2015, then you may have heard the name. The fact is that something just because it shines does not mean it’s gold. Click to see.
Exchanges of crypto currency are notorious for their complexity. These exchanges act as middlemen, bringing buyers and seller of digital assets together. Cryptsy didn’t differ in this respect, but initially what set it apart was its wide array of alternative coins. There was a listing for every coin you could imagine. Imagine a sweet shop for crypto lovers. What could be better?
However, the truth was far more complex than first appeared. As soon as the complaints started to come in, they were a flood. Withdrawals were as slow as a snail. Money disappeared as if it had gone into a blackhole. People started to suspect foul-play, and they were right. The Cryptsy vessel wasn’t leaking. Instead, it was sinking.
Paul Vernon had much to answer for as the captain of that vessel. Losses of about $5,000,000 worth of Bitcoins and Litecoin were attributed an internal hack. A hack within the company might seem convenient. It’s almost like saying that your dog ate your homework. But it gets even juicier. Vernon fled China when the platform was shut down in January 2016. This left many investors stranded.
Lawsuits started to sprout like mushrooms after rainstorms. The class actions were filed. Assets are frozen. Vernon didn’t simply disappear. He kept posting social media posts, almost as if he were poking a frustrated bear.
What made a platform popular become so shambles now? Was it a case of pure greed, poor leadership, or just a cautionary tale to crypto enthusiasts? It could be a mixture of all three. Cryptsy’s stories are not the only ones in the cryptoverse. Bitfinex experienced problems, while Mt. Gox, a legendary failure. Binance also had some hiccups.
What is the moral to this story? Your best friend in dealing with exchanges is due diligence. Platforms that look stable can fall apart quicker than a castle in the high tide. Read reviews and learn from other users’ experiences. Never invest more than what you can afford. Not only should you be sure to secure your seatbelt, but also read reviews and learn from other users’ experiences.
It’s only the beginning. Many people are swept away by the gold rush mindset. The promise of big returns can make people want to do more. Remember that scene in a movie where someone was so greedy, they missed the obvious cracks on the deal. Cryptsy’s story is very similar.
To venture into crypto would be like diving into an enormous ocean filled with hidden treasures and mysterious depths. Some flail while others swim. Cryptsy’s message is to be careful and look before you dive. It’s true that the surface is dazzling, but there could be something else lurking beneath.
Cryptsy has taught us many valuable lessons, and it’s been a nightmare for the legal system. It is almost like a fairytale warning crypto enthusiasts. Ironically for those that are interested in learning, its demise teaches them more than its success ever did. Cryptsy was a victim of the digital currency mania. The glimmer became a goner.