Welcome to the History of Crypto, a Cointelegraph series that takes readers on a journey through the most significant events in the cryptocurrency world. Powered by Phemex, this timeline allows members of the crypto community to revisit the important moments that have shaped the industry into what it is today.
In this article, we will explore the period from 2013 to 2015, a pivotal time in the cryptocurrency world. During this period, Bitcoin (BTC) experienced a surge in mainstream adoption, marking a significant shift in the recognition of digital currencies. However, this era was not without its challenges, as it also witnessed the dramatic fall of Mt. Gox, highlighting the risks and volatility inherent in the emerging crypto market.
This period also saw the emergence of the first memecoin and the first nonfungible token (NFT), innovations that expanded the creative and functional possibilities of the crypto landscape.
But perhaps the most important development during this time was the birth of the Ethereum network. This groundbreaking platform aimed to leverage blockchain technology for more than just currency, paving the way for smart contracts and decentralized applications (DApps). This period played a crucial role in shaping the trajectory of the cryptocurrency movement, laying the foundation for future innovations and challenges.
Bitcoin continued its expansion during this time. After the first Bitcoin halving in 2012, BTC reached a notable milestone a few months later. On March 28, 2013, the price of Bitcoin began trading at around $92, reaching a market capitalization of $1 billion for the first time. This was a significant moment in the history of the cryptocurrency.
In April 2013, during the Cyprus banking crisis, Bitcoin reached a new all-time high of $190, attracting widespread attention. This crisis highlighted the potential advantages of decentralized currencies, positioning Bitcoin as a viable alternative to the vulnerabilities of the traditional financial system. However, the value of Bitcoin experienced a significant drop to $68 just a week after reaching its peak.
Later in the year, Bitcoin continued to captivate market observers by surpassing expectations and reaching $1,000 on November 19. This achievement, first on the BTC China exchange (now BTCC) and subsequently on Mt. Gox, underscored Bitcoin’s growing relevance and the increasing interest in its role as an alternative asset within the broader financial landscape.
Unfortunately, this critical period also witnessed the downfall of Mt. Gox, the largest crypto exchange at the time. In June 2013, Mt. Gox announced a temporary halt of U.S. dollar withdrawals, causing two weeks of uncertainty. Although withdrawals eventually resumed, the exchange faced difficulties in efficiently processing them, revealing operational hurdles.
In a significant development, Mt. Gox announced the suspension of U.S. dollar withdrawals in February 2014, followed by a halt to Bitcoin withdrawals. This series of events culminated in the suspension of trading and a bankruptcy filing in Tokyo. Mt. Gox sought bankruptcy protection in the United States in March 2014, disclosing that 750,000 BTC belonging to its customers and 100,000 of its own coins had been compromised, resulting in a loss valued at around $473 million at the time.
While the fall 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, later rebranded as OKX, launched its operations in June 2013, followed closely by Kraken on September 10, 2013. Coinbase, established in 2012, secured a $25 million Series B funding round in December 2013, demonstrating the growth and resilience of new entrants in the cryptocurrency exchange landscape during a time of upheaval.
In 2013, Vitalik Buterin introduced the Ethereum network through a white paper, positioning it as a versatile platform for developing DApps. Buterin envisioned blockchain technology serving purposes beyond monetary transactions. In January 2014, Ethereum was unveiled at the North American Bitcoin Conference in Miami by co-founders Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Buterin himself.
These exchanges now offer users access to a wide range of cryptocurrencies, with Ethereum’s native coin, Ether (ETH), securing its position as 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. Stay tuned to Cointelegraph for insightful updates on the most pivotal developments in crypto history.