Remember Cryptsy? Thousands of crypto traders used it as their preferred cryptocurrency exchange. It used to be like a local drinking hole, a place where many people would gather to trade different digital coins. Cryptsy is proof that not all that shines really is gold. Learn more now.
Cryptsy is not just the big fish in small ponds; it’s a whale swimming in an ocean of little minnows. At its peak, the site offered trading on over a hundred different types of cryptocurrencies. For many, the site looked like an endless candy store, with each aisle more attractive than the one before. Behind the curtain, it wasn’t all rosy. Imagine a rickety ride at a carnival that’s just prone to mechanical failure.
Let’s not waste time: Cryptsy was founded by Paul Vernon (or “Big Vern,” to give him his full name) who, like the magician that pulled rabbits out hats had another trick he kept hidden. He admitted to stealing user money to maintain his extravagant lifestyle. It was all there: expensive cars, lavish trips, everything. The classic greed was raging, a serpent on a grassy field.
You know when you’re watching horror films and you know that someone is about do something stupid? Cryptsy user’s felt that way, looking back. It was $9 million in Bitcoins and $2 million Litecoins that vanished into thin-air. It was all a bit shady.
Digital world stopped when the collapse happened. The collapse of the digital world left many people in a state of utter confusion. Their money was as easily accessible as an armored dragon’s vault. Soon, lawsuits were flying everywhere. Freaking legal war zones, man. Let’s also not forget the FBI. They swooped faster than an hawk watching its prey.
People were on fire in social media. Forums transformed into battlegrounds as angry users demanded answers. “Where’s the money, Big Vern?” “…that question echoed as loudly as a thunderclap. You couldn’t avoid it. Everyone was curious to find out how a platform which seemed so promising could end in such a catastrophe.
It was a painful breakup right after the bankruptcy. Users scrambled in order to find alternate trading platforms. Trust was broken, and the crypto-community had to pick it up like a shattered window, in order to avoid seven years’ worth of bad luck.
Cryptsy is gone, like a spirit into the ether. But it left a trail full of cautionary stories. Cryptsy proved to be a painful introduction for some people to the world of high-risk cryptocurrencies. It showed how important it is to do your homework before you trust any platform with hard-earned assets.
After all, hindsight really is 20/20. And if there’s anything we can learn from this catastrophe, it’s the fact that trust has more value than Bitcoin. No one wants Cryptsy coming along to wreck more lives. You should be very careful if you decide to get into cryptocurrency trading. It’s not only wise but essential to be vigilant in an environment that is rife with danger and promise.
These days, we are more distrustful than ever. What is the Cryptsy scam? It serves as a warning that something is likely to be a scam if it seems too good. The next time that you’re considering a new exchange for crypto investments, keep in mind Cryptsy. Or, better yet, Big Vern with his fancy car, and proceed cautiously.