Key Points
The History of Crypto: 2013-2015
History of Crypto is a series that takes readers through the most impactful events in the cryptocurrency industry.
Powered by Phemex, this timeline allows the crypto community to reflect on the significant events that have shaped the industry.
This article takes a look at the crucial period from 2013 to 2015, a time of significant advancements and challenges.
During this time, the growing mainstream adoption of Bitcoin (BTC) signified a critical shift towards digital currencies.
However, this era also saw the dramatic collapse of Mt. Gox, highlighting the risks and volatility of the emerging crypto market.
It was also during this time that the first memecoin and nonfungible token (NFT) emerged, expanding the creativity and functionality of the crypto landscape.
The Rise of Ethereum
The Ethereum network was born during this period, promising to utilize blockchain technology for more than just currency.
This innovative development paved the way for smart contracts and decentralized applications (DApps), setting the stage for future innovations and challenges.
After the first Bitcoin halving in 2012, Bitcoin reached a significant milestone a few months later.
On March 28, 2013, Bitcoin began trading at around $92, leading its market capitalization to hit the $1 billion mark for the first time.
During the Cyprus banking crisis, Bitcoin reached a new all-time high of $190 on April 10, 2013, highlighting the potential benefits of decentralized currencies.
Despite the initial surge, Bitcoin’s value dropped to $68 just a week after reaching its peak.
Bitcoin continued to exceed expectations, reaching $1,000 on Nov. 19, first on the BTC China exchange (now known as BTCC) and subsequently on Mt. Gox.
This achievement highlighted Bitcoin’s growing relevance and the increasing interest in its role as an alternative financial asset.
The Fall of Mt. Gox and the Emergence of New Exchanges
During this critical period, Mt. Gox, the largest crypto exchange at the time, faced significant challenges.
On June 20, 2013, it announced a temporary halt of U.S. dollar withdrawals, setting off two weeks of uncertainty.
Although withdrawals eventually resumed, the exchange encountered difficulties processing them efficiently, highlighting the operational challenges it faced.
In a significant development, Mt. Gox announced the suspension of U.S. dollar withdrawals, followed by a stop to Bitcoin withdrawals on Feb. 7, 2014.
This series of events culminated in the suspension of trading on Feb. 24, 2014, and a bankruptcy filing in Tokyo shortly after.
The situation worsened 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.
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 would later rebrand to OKX, launched its operations on June 1, 2013.
Close on its heels, Kraken’s trading platform became operational on Sept. 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 DApps.
Buterin outlined how blockchain technology could serve purposes beyond just monetary transactions.
In January 2014, Ethereum co-founders Gavin Wood, Charles Hoskinson, and Anthony Di Iorio unveiled Ethereum at the North American Bitcoin Conference in Miami with Buterin.
These exchanges now offer users access to a broad array 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.
