Cryptsy had a reputation for being a popular name during the early days. The digital marketplace promised to usher the new era in trading altcoins. And it worked. The Wild West was a reality for a few years. Profits could be made on a daily basis. Occasionally, it seemed like they were printing money. The euphoria of the moment was palpable. But, as with any party whose roar is too loud, it crashed just as spectacularly. Get more information.
Cryptsy was a new cryptocurrency that appeared to fill an enormous void. Other cryptocurrencies were only just beginning to gain traction. This “altcoin” needed to be a trading place where ordinary people could buy or sell. Cryptsy was born. The platform opened up the barn doors, listing an astounding number of digital coins. It was a draw for both traders and speculations.
People were attracted to it. You could buy and sell dozens of coins. It was like a grocery store of cryptocurrency trading. Cryptsy was like a dream, or so it appeared. Early success tales circulated on the grapevine. Traders were turning $100 overnight into thousands. If you’re lucky or smart, you can take home a ton of cash.
There are dark currents circulating beneath the shiny surface. Initially, whispers were heard. Someone was unable withdraw their money here. A wallet balance vanished mysteriously there. This was Wild West, after all. Some risk was expected.
In the end, it turned out that those whispers were really warning shots. Cryptsy suddenly shut down in January 2016 after a series of warning shots. Paul Vernon (“Big Vern”) (the founder) claimed that bugs in software and hacks had robbed millions of dollars of cryptocurrency. Users were left with nothing–coins disappeared, accounts zeroed. Lawsuits were filed like weeds. A class-action lawsuit was brought to the media’s attention.
It gets murkier. Big Vern, it is reported, fled to China. He couldn’t be served legal papers over the Pacific Ocean, so his lawsuits fell flat. Cherry-picked data later revealed that he had secretly transferred stolen funds to his coffers and left users in penury. Oh, how human!
The scandal shocked the cryptosphere. Once lost, trust can be hard to gain back. Cryptsy has been the subject of lawsuits like a grim reaper’s cloak. They culminated with a class action settlement. Lawyers were able to claw back a small amount of money, which was a penny for every dollar that users had lost. By that time, the damage had exploded out of all control.
Cryptsy serves as a warning tale. Be careful when you enter the crypto pool. Check, double-check and listen carefully to whispers. Smoke is often a sign that there’s fire. It’s a good idea to trust but verify.
Cryptsy’s rise, and then fall, teaches a very important lesson. In a world where fortunes can rise and fall in an instant, security can also be thrown into disarray. You’re putting together a jigsaw with many pieces, but the picture may not be the same as the one printed on the package. Buyer beware never rang truer. Be careful, be vigilant, and for the love of God, don’t throw all your eggs into a single basket.