Remember Cryptsy? It used to be the preferred cryptocurrency exchange by thousands of traders. In the past, it was a local watering-hole–a busy, popular place for people to gather and trade digital coins. Cryptsy was a good example of the old saying, “not all that glitters, is gold.” Discover here.
Cryptsy didn’t simply exist in a small pond, it was a whale amongst a sea of minnows. At its peak it offered trading of over a 100 different types cryptocurrencies. Many thought it was a candy-store with endless aisles that were each more appealing than the previous. The truth was that things were far from rosy. Imagine a carnival ride with a mechanical breakdown that could spell disaster.
Let’s cut straight to the chase. Cryptsy’s founder Paul Vernon – or “Big Vern,” if you prefer – was like a magician who pulled rabbits from hats while having a trick that nobody wanted. He admitted later to using user funds to support his lavish lifestyle. He had fancy cars and extravagant trips. It was pure greed, a snake on a grassy yard.
Do you ever watch a scary movie and just feel that someone is going to do something stupid? Cryptsy customers had the same feeling in retrospect. In total, $9 million of Bitcoin and $2,000 in Litecoin disappeared into thin air. The whole thing looked shadier that a palm during a blackout.
When the collapse took place, the digital world was stunned. People were left with no money, and their funds were only as accessible as the vaults guarded by dragons. The lawsuits started flying in no time. Freaking legal war zones, man. And don’t forget about the FBI. They swooped down faster than a bird of prey spotting its target from the air.
The social media were ablaze. Forums were turned into battlefields by angry users who demanded answers. “Where’s My Money, Big Vern?” ” –that question echoed more loudly than a thunderclap. It was impossible to avoid. Everybody was curious as to how an initially promising platform ended up in disaster.
After the bankruptcy filing it felt as if there had been a bad split. Users scrambled for alternative trading platforms. The crypto community struggled to rebuild trust, as if picking up pieces from a shattered glass mirror.
Cryptsy, which disappeared like a phantom into the ether left behind a trail warning tales. Cryptsy taught some their first painful lesson about the high-risk world of cryptocurrency. Cryptsy taught many that they should do their homework before trusting a platform with their hard-earned digital currency.
We’ve all learned that the value of trust is greater than Bitcoin. I can assure you that no one wants a Cryptsy-like scam to ruin even more lives. Be careful when you start trading cryptocurrency. Vigilance is not just prudent, it’s necessary in a world that’s filled with both potential and danger.
Today, distrust is a major issue. It may even be more prevalent than our love of digital currencies. The Cryptsy tale? It is a good reminder to not believe anything that sounds too good. Think of Cryptsy, or better yet Big Vern, and his fancy cars, the next time you want to jump into a crypto exchange. Proceed with caution, like a tightrope-walker on a windy morning.