During its prime, Cryptsy was a powerhouse and made a name in the crypto exchange market. In 2013, it appeared that the exchange could not give more to a trader than it did. Cryptsy was the right place to be, in case you were itching to trade Bitcoin or to have a look inside the treasure chest of altcoins. It was also an attractive offer to the less conservative crypto enthusiasts who could find a vast selection of coins that were not even available on other platforms. To have a closer examination of the rise and fall of Cryptsy, turn to the next page.
However, with so much power one is so much responsible–at least that is the way the saying ought to have it. Cryptsy apparently had not received the memo. The first big disaster has happened in 2014 a huge hack. Millions of dollars of Bitcoin and other altcoins were lost in the exchange. The losses were significant and instead of suppressing the storm, the reaction of Cryptsy towards the hack added more gasoline to the fire. Customers barely saw action or reimbursements being made as promised. Confidence in the platform was draining out at a rate surpassing the intervals between uttering the word blockchain.
By the year 2015, things were not much better. Cryptsy halted payouts on several occasions citing technical problems. However, the truth is, the fact that you have already squandered a considerable portion of user money and your platform is hardly a fortress of security, the technical troubles are no longer than a sheet of paper. Users weren’t buying it. Citizens started running away as they had the fear that their property would be on the block next.
At the beginning of 2016, Cryptsy was obviously on its way out. Lawsuits were accumulating and fraud charges were brought forward. This trade was formally closed and traders were left to freeze. It was as though one got into their bed only to open their wallets and lose their life savings, poof, in no time at all.
In retrospect, the Cryptsy case is one of poor judgment and lost chances. The platform had potential, it was simply that it did not offer protection to its users. The crypto industry was uncontrollable at the time and trading platforms aiming to perform well had to demonstrate their ability to deal with technical and customer care challenges. Cryptsy simply didn’t step up.
All that remains of Cryptsy today is a warning to any entity that wants to get into the crypto exchange industry. A wide variety of coins was a pleasant gimmick, all right, though that alone cannot sustain an exchange without providing it with some substantial security and communications. Cryptsy possessed everything, yet he was unable to sustain it.