A strange situation has developed today with many cryptocurrency traders left wondering if their money is safe or not. Media reports have popped up all over the cryptocurrency ecosystem that popular Altcoins exchange, Cryptsy, is down after months of clients reporting withdrawal issues in various forums.
The site reportedly displayed a message yesterday reading: “Trade engine and withdrawals paused while we investigate cause of lag. Your patience is appreciated. Thank you.” However, right now this message is nowhere to be seen and the site is back to displaying actionable price quotes and accepting withdrawals.
Founded by Paul Vernon, Cryptsy is a Florida-based exchange platform that trades in over 130 cryptocurrencies. According to Vernon, he created Cryptsy as a response to the demand that arose from mining various Altcoins. Starting by first adding Litecoin and Feathercoin for conversion into bitcoins, Cryptsy has grown into one of the main exchanges miners use to find liquidity for lesser known Altcoins and has come to be considered as the number one venue for Altcoins.
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What makes the situation so tense for Cryptsy clients is that unlike in the past, the company has yet to release a follow up or clarification on the suspension/lag issue and Vernon remains silent on twitter. This naturally caused the traders to question if we are about to see a new Mt. Gox scandal hitting the scene. In the past Vernon has announced on twitter beforehand when maintenance will affect performance or when the website is facing cyber (denial of service) attacks. Finance Magnates has reached out to the Cryptsy team and we will update if and when a response is available.
— Or Weinberger (@orweinberger) January 6, 2016