Crypto Blunders

blunders
At the time of writing this article, Bitcoin itself is almost 10 years old. In fact, we’re almost exactly 6 months off the 10-year anniversary of Bitcoin. 10 years is a quite a long time, but even so, the majority of the crypto community would certainly agree that Cryptocurrency is still in its infancy. With the technology still being relatively new, this leaves a lot of room for all sorts of mistakes, blunders, scams and all around fails.

Let’s take a look into some of the bigger blunders that have happened over the history of crypto.

 

Nicehash hack

You’ve probably heard of Nicehash, as they do claim to be one of the largest crypto mining marketplaces available on the internet. At the end of last year, on the 6th December 2017, there was a report made that Nicehash systems had been compromised. The report stated that the company’s Bitcoin had been stolen; which the CEO of Nicehash, Marko Kobal, confirmed by showing the wallet address with the stolen funds.
NiceHash CEO speaks out after $60m cryptocurrency hack

 

Dogecoin

I think Dogecoin could almost have its own category entirely. The coin was released back in December of 2013, initially introduced as a “joke currency.” However, it didn’t take long for Dogecoin to quickly develop its own online community and soon reached a capitalization of $60 million USD by January 2014. I think that was the first signs of a very passionate community behind Dogecoin.

I included Dogecoin in this list because while it was created with the intent of being a joke, it’s obvious that it failed at doing that. As overtime, Dogecoin became well known for being used in charitable acts; such as raising $50,000 USD to help send the Jamaican Bobsledding team to the 2014 Sochi Winter Olympics.

Then in March 22nd, Eric Nakagawa lead the Dogecoin Foundation to begin collecting more donations to build a well in the Tana river basin in Kenya. They cooperated with Charity: Water and managed to raise $30,000 USD for the campaign.
The Dogecoin community even managed to raise $55,000 USD and sponsor a NASCAR driver named Josh Wise, who sported a Dogecoin/Reddit paint scheme on his car during his race.

But my personal favourite Dogecoin shenanigan is definitely when a satellite launched a microchip into orbit that had the Dogecoin logo engraved on the exterior.
Dogecoin LaunchTo find out more about Doge funding events, follow the link below.
Wikipedia – DogeCoin – Fundraising

 

Mt. Gox

This article wouldn’t complete without at least a mention of Mt. Gox, which is arguably the biggest f*ck up in the history of Bitcoin and Crypto. Let’s do a quick recap; Mt. Gox was a bitcoin exchange that was based in Tokyo, Japan. It was first founded in 2010 but by 2013/14 it was handling over 70% of all BTC transactions worldwide; making it (at the time) the worlds leading Bitcoin exchange.

All sounds good, right? Well, in February of 2014, the exchange filed for bankruptcy and closed the website as well as the exchange. And just 2 months after that the company began liquidation proceedings.

It was announced that around 850,000 Bitcoins that belonged to the customers of the exchange and the company, were ‘missing.’ You can, of course, understand that many customers were not happy. The estimated value of the missing Bitcoins, at the time, was around $450 million USD.

Fast forward a little more, and so far, only “199,999.99” Bitcoin has been ‘found’, which the company reported was found in an old digital wallet that the company used prior to 2011.

Unfortunately for the company, the whole ordeal isn’t quite over with (Which cointelegraph covers in this article):
The Mess That Was Mt. Gox: Four Years On

 

DAO

Have you heard of DAO? Ethereum’s DAO (Decentralized Autonomous Organization) was announced in April 2016. Its objective was to provide a new decentralized business model for organizing both commercial and non-profit enterprises. At the time of May 2016, Dao had set the record for the largest crowdfunding campaign in history when they brought in over $168 million USD. After it was listed on exchanges, the DAO token quickly reached the peak price of 0.19 USD per token.

The crypto community was extremely happy and completely crazy over DAO, but unfortunately, the good times would soon come to an end, as on June 18th there was an attack on DAO. The DAO smart contract had a vulnerability, letting the attackers syphon and run off with more than one third (was reported to be more than $50 million USD) of the DAO’s funds.

It was the actions after the attack that caused Ethereum to undergo a hard-fork. The Ethereum community was split with one side supporting the fork as it would restore all the funds that were stolen back to the original contract. The other side, however, decided to stick with the original unforked blockchain which is now known today as Ethereum Classic.

 

So, as you can see, crypto still has a long way to go, but with the community constantly working hard, hopefully, we can soon see a stronger and more secure cryptospace.

 

 

Cool references and links:

https://medium.com/@MikeBacina/1b-lost-the-5-biggest-cryptocurrency-fails-of-2017-9862131e2bf7

http://bitcoinist.com/cryptocurrency-failures-all-time/

https://en.wikipedia.org/wiki/The_DAO_(organization)

http://bitcoinist.com/cryptocurrency-failures-all-time/

 

Cover illustration artist ThoughtWeaver, DeviantArt

The following two tabs change content below.
Just two months after his first Bitcoin purchase, Loy found himself working with Embily and has been a Cryptocurrency evangelist ever since. Follow his journey as he continues to learn all he can about Crypto.