Welcome to the captivating journey through the History of Crypto, a captivating series by Cointelegraph that takes you back to the most significant moments in the world of cryptocurrencies. Powered by Phemex, our interactive timeline allows you to explore and revisit the key events that have shaped the industry into what it is today.
In this article, we will delve into the pivotal period between 2013 and 2015, a time of remarkable advancements and notable challenges in the crypto world. It was during this time that Bitcoin (BTC) started gaining mainstream recognition, marking a crucial shift towards the acceptance of digital currencies. However, this era also witnessed the dramatic downfall of Mt. Gox, highlighting the risks and volatility inherent in the emerging crypto market.
This period also saw the birth of the first memecoin and the first non-fungible token (NFT), innovations that expanded the creative possibilities and functionality of the crypto landscape.
But perhaps the most significant development of this time was the conception of the Ethereum network. This groundbreaking project aimed to leverage blockchain technology for more than just currency, paving the way for the creation of smart contracts and decentralized applications (DApps). This period played a crucial role in shaping the trajectory of the cryptocurrency movement, setting the stage for future innovations and challenges.
Bitcoin’s expansion continued during this period. Just a few months after the first Bitcoin halving in 2012, BTC reached a significant milestone. On March 28, 2013, the price of Bitcoin soared, beginning to trade at around $92. This price surge propelled its market capitalization to surpass the $1 billion mark for the first time, marking a historic moment in the history of cryptocurrencies.
During the Cyprus banking crisis in April 2013, Bitcoin gained widespread attention by reaching a new all-time high of $190. This crisis highlighted the potential advantages of decentralized currencies, leading many to see Bitcoin as a viable alternative to the vulnerabilities of the traditional financial system. However, shortly after reaching its peak, Bitcoin’s value experienced a significant drop to $68.
Later in the year, Bitcoin continued to captivate market observers by surpassing expectations and hitting $1,000 on November 19. This milestone was achieved first on the BTC China exchange, now known as BTCC, and subsequently on Mt. Gox. This achievement underscored Bitcoin’s growing relevance and the increasing interest in its role as an alternative asset within the broader financial landscape.
However, this critical period also witnessed the challenges faced by Mt. Gox, the largest crypto exchange at the time. On June 20, 2013, Mt. Gox announced a temporary halt of U.S. dollar withdrawals, sparking two weeks of uncertainty. Although withdrawals eventually resumed, the exchange encountered difficulties in processing them efficiently, highlighting the operational hurdles it faced.
In a significant turn of events, Mt. Gox announced the suspension of U.S. dollar withdrawals, followed by a halt to Bitcoin withdrawals on February 7, 2014. This series of events culminated in the suspension of trading on February 24, 2014, and a subsequent bankruptcy filing in Tokyo.
The situation escalated further when Mt. Gox sought bankruptcy protection in the United States in March 2014, revealing that 750,000 BTC belonging to its customers and 100,000 of its own coins had been compromised. This amounted to a loss valued at around $473 million at that time.
While the downfall of Mt. Gox marked a turbulent period in the cryptocurrency sector, it coincided with the emergence of several platforms that would become major players in the future. Okcoin, which later rebranded to OKX, launched its operations on June 1, 2013. Soon after, Kraken’s trading platform became operational on September 10, 2013.
Meanwhile, Coinbase, established in 2012, secured a $25 million Series B funding round in December 2013, led by venture capital firm Andreessen Horowitz. This showcased the growth and resilience of new entrants in the cryptocurrency exchange landscape during a period of upheaval.
In 2013, Vitalik Buterin introduced the Ethereum network through a white paper, positioning it as a versatile platform for developing decentralized applications (DApps). Buterin’s vision went beyond just monetary transactions, envisioning blockchain technology serving various purposes.
In January 2014, Ethereum was officially unveiled by co-founders Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Vitalik Buterin at the North American Bitcoin Conference in Miami. Today, Ethereum’s native coin, Ether (ETH), holds the position of the second-largest digital asset by market capitalization. Ethereum has fulfilled its promise by evolving into a central platform for DApps.
In the next installment of Cointelegraph’s History of Crypto series, we will delve into the initial coin offering boom and the ongoing evolution of Ethereum. Make sure to follow Cointelegraph for insightful updates on the most pivotal developments in the history of cryptocurrencies.