Crypto-Trade Cryptocurrency Exchange
History of Crypto-Trade
Crypto-Trade was one of the well-known cryptocurrency exchange sites before it was shut down in early 2015. The exchange, founded in 2014, made a splash into the cryptocurrency exchange community. It soon became a silver member of the Bitcoin foundation and by having a large corporation with a large liquidity behind them.
Being a silver member of the Bitcoin foundation was a big deal initially, as it used to reflect that the company was committed to improve the Bitcoin and help fund the industry based on it. They also offered two-factor authentication as one of the first sites and took security very seriously. It ensured that the users do not suffer losses due to hacks and phishing attempts.
The site quickly became popular in the Asiatic market, as the exchange was based out of Hong-Kong. The Bitcoin and crypto currency market was booming in Asia at the time, especially in China and Japan, where regulations had yet to be introduced to the market. This led to thousands of customers using the platform on a daily basis and established them amongst one of the more secure places to trade.
Unlike most other exchange sites at the time, Crypto-Trade did not just offer their users to trade Bitcoins and a few other popular coins. Instead, they offered the possibility to trade more than 100 different cryptocurrency coins, ranging from the smaller, niche-based ones to those that have grown to be very popular today.
The site offered a great trading platform for beginners as well as established traders. It had all the information necessary for users to see which way the market was going and it made it easy to buy and sell cryptocurrencies. It offered a variety of fiat-currencies to trade with, and was a great choice to use at the time.
Like most other exchange sites, Crypto-Trade made their money by charging a small fee for every trade made in their platform. While it seemed that the exchange was doing well, new regulations and laws were introduced in China and other countries, which meant the overall volume would decrease rapidly and the site would not make enough money.
These events, along with the Bitcoin value taking a massive dip in value due to the newly introduced regulations, caused Crypto-Trade to close down in the beginning of 2015. While the closure was not in any way dramatic, due to their decrease in trades and active users, it stood as a reminder that even though a company has done the right things to run an operation, it is not always enough in a volatile industry.
What went wrong?
As mentioned earlier in this article, it seems that Crypto-Trade was amongst the first sites to be hit hard with the new regulations introduced around the world, especially in China. When a large portion of their user base was no longer allowed to trade on the platform, the volume took a massive dip and they could no longer run operations.
At the same time, as the regulations began rolling out across the Globe, the Bitcoin value took a massive dip in value. The Bitcoin had been worth upwards of $1.000 a coin in 2014, but was now worth only a fraction of that. The Bitcoin hit a new low when it was worth only $150 a coin, making it hard for a company that was living of fixed percentage trade fees to sustain business.
The company behind Crypto-Trade made a decision to shut down the operations. The users were informed that they had 48 hours to request withdrawals of their coins as well as fiat-currencies and that they would continue to cash out until their private wallet accounts were empty. The site cited low volume and a lack of solid user-base as the reason for the closure.
The announcement was met with anger in the community, with people fearing that they would not receive all their funds. While there has not been a massive media coverage regarding the closure and regarding if people lost funds or not, it seems that some customers had some difficulty receiving all of their funds, which means that the company probably didn't have all the customer funds available for cash out and that they had used some of the funds to continue to run their operations for a little too long.
It became even worse when the exchange announced shortly after that they would not be shutting down indefinitely after all, announcing that they would re-open Crypto-Trade within three months with a brand new management and development team. This turned out not to be true and the exchange has been offline ever since, with little to no news about them since then.
I have funds stuck in Crypto-Trade, what do I do?
Should you be in the unlucky situation that you have funds or cryptocurrencies stuck in Crypto-Trade, we are sorry to tell you that it might be too late to retrieve any of the funds. The site has been offline for quite some time and we are confident that it is not possible to get in touch with the team who ran the exchange and ask for a refund.
If you are looking for a reliable place to exchange cryptocurrencies, we recommend that you have a look in our Cryptocurrency Exchange reviews, where you can find the places that are in business, who are solid financially and who we can vouch for.