by It was a cautionary tale in the wild west of cryptocurrency: Cryptsy. Picture yourself into a busy marketplace where all sorts of people are milling about, each with their own treasures to exchange. That’s what Cryptsy was-an online platform composed of cryptocurrencies as the treasures and traders at the bazaar. 200 kinds of digital currency are offered by Cryptsy. For crypto enthusiasts, this was like a candy store. Click here!
Now, you might hear “exchange” and think of a convenient, reliable bank teller. Cryptsy, on the other hand, more nearly resembled a roadside stand–exciting, but without as many guarantees. In the early days, things went swimmingly. Each day a decent number of trades were taking place in some volume on the exchange. Everybody it seemed was on the gravy train.
But as with any story peppered with volatility you are always on tenterhooks for the other shoe to drop. And it did. Whispers began–things weren’t adding up behind the scenes, dirt was being kicked around. The horror when Cryptsy users logged in one day and found the digital wallets empty. Panic set in faster than a bolt in the middle of stormy weather occurring during a summer storm, joe awayball heyooo.
Yet after some dust had settled, it emerged that there was a security breach at Cryptsy–involving millions. An internal investigation pointed fingers at the CEO of Cryptsy IRL, inadvertently setting off a scandal. Legal battles followed for what seemed like ever with trades left on the Brooklyn Bridge. For many, the damage was beyond repair and marked a major pothole in their crypto journey.
Cryptsy serves as a sobering cautionary tale on the dragon’s tooth game of crypto exchanges. Do you leap into deep waters without first giving them a second glance or squint into the murk looking for potential hazards? Just as it is essential for poker players to know when to hold ’em and when to fold ’em, crypto traders must always be on guard, homework done before taking the bend.
What we learn from Cryptsy is as true today as back then. Don’t put all your eggs in one digital basket; always look before leaping; and remember-the early bird might get the worm but it’s the second mouse who gets cheese. Or in this case, keeps his coins.