Cryptsy used to be the golden boy of the crypto exchanges industry. It was launched in 2013 and soon became the hot spot where crypto enthusiasts came to buy and sell a broad range of altcoins. As most trading platforms were content with the fundamentals namely Bitcoin, Litecoin, Cryptsy had taken the step forward and provided dozens of minor coins. Cryptsy was the dream maker to those who wanted to be on the lower floor when the next big thing came. Read on to find out what led to its dramatic downfall.

In 2014, a terrible event happened to Cryptsy, a hack. Bitcoin and other altcoins worth millions of dollars were stolen. But the real kicker? Cryptsy did not do it too well. Initial commitments to pay were given out and most of the users were left without a dime. Their reputation was destroyed gigantically. And along with it, a good big portion of trust disappeared.

But the story didn’t end there. Cryptsy was already reeling in 2015. The withdrawals were frozen on several occasions on account of technical reasons. Sounds familiar, right? It was no difficult to feel at this stage that Cryptsy was operating on fumes. The trading that had presented hope to the newest altcoin buyers was now being full of question marks. There were other traders who remained hoping that things would improve. There were other ones though who had already given up.

By 2016, it was over. Crimes of law were involved and charges of fraud accumulated. Cryptsy closed down permanently. They did not only deprive the customers of what they had to lose, but the entire exchange failed miserably under the strains of its own blunders.

The collapse of Cryptsy is a prime illustration of how easy it is to lose money in the crypto-sphere. Every element was present to make it successful: a broad range of coins, a highly used fanbase, and a high potential of returns. However, it became evident in the end that security and customer service are as important as the next big coin. The demise of Cryptsy was a lesson to the traders around the world: Never put all your eggs in one basket. And most importantly, when an exchange looks too good to be true, then it likely is.

Crypt world is a fast evolving one, and the story of Cryptsy is an unpleasant lesson of how quickly fortunes can change. Otherwise you may well be on the losing side. The key takeaway? In cryptocurrency, trust is all. And without it even the brightest stars may fall.