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Bitcoin companies that failed – Mt. Gox, Mybitcoin, 37 Coins, Neo & Bee, Gaw Miners

Technology has played a big role in establishing modern industries. For instance, the e-commerce sector and online media were made possible by the internet. Another world-changing technology in our possession is the blockchain public ledger.

This technology may be in its infancy but still, it’s making tremendous changes in the world. For instance, the Blockchain technology has been a key factor in bringing about cryptocurrency.

Since cryptocurrency came into fashion, a boatload of startups have been launched, and although most of the startups have had a wild run for success; which may be attributed to a blend of good planning and enough resources, there have been others crushed out of existence, making victims of their customers.

  • Mt. Gox

When Mt. Gox was getting launched, trumpets were blown, and women circled their backsides. The company lived to its hype as it captured almost 70% of the bitcoin market. The company provided bitcoin exchanges. Customers had twin accounts with Mt. Gox; one account for keeping bitcoins, and the other for fiat currency. So the buying and selling process on the Mt. Gox platform was about instantaneous; sellers had their earnings debited in their currency account, and their bitcoin sum reduced; buyers had their currency account credited, and their bitcoin sum increased.

And then a hacker came along and compromised the exchange’s software, and technically transferred a fortune of Bitcoins into his wallets. And so the prices cautiously dropped down. Customers experienced delays in withdrawals. And soon the company was frozen out by the banks handling its customers.

Mt. Gox was pressured to call it a day, and the CEO was later arrested, and from there onwards, conspiracy theorists and retards took over.

  • Sheep Marketplace   

This was sort of an exchange for bitcoin trading. But apparently, some customers (hackers) had bugged the system, and they could siphon BTC’s into their wallets, and convert them into fiat currency, making 100% profits. Before the malware was detected, the company was teetering on bankruptcy, and it could not compensate the customers, and so it shut down.

  • Mybitcoin 

This company used to provide wallet services to customers. The startup had begun its operations quite early and so their subscriber base had been considerable. And then one day, the company CEO published an article about imminent closure, because there had been a security breach that had led to the compromise of the wallets and customer BTC’s stolen!

  • Gaw Miners

This was a BTC mining company that many others had signed up into. However, their style of mining was steeped in controversies, and it seemed their subscribers weren’t getting paid. Mismanagement proved a factor too as the staff went away. The customers went to courts to compel the company to pay them and the company closed down and filed for bankruptcy.

  • 37 Coins

This company provided mobile bitcoin wallet, and its customers would purchase products on stores that accepted BTC’s. However, it wasn’t long before the company got hacked, and wallets emptied and effectively ruined the business.

  • Neo & Bee

Based in Cyprus, it’s unlikely that this bitcoin exchange suffered from hackers than it was a scam. The company launched its services and through sheer advertising, they held a big market chunk. And then one fine day the CEO (some chap named Danny) closed shop and ran… with customer bitcoins!

  • Warnings      

It is important that you conduct research prior to joining an exchange. Transfer your digital assets into your hardware wallets after hitting a certain threshold. In light of the low stamina of some BTC companies, it’s also wise to have accounts with as many wallets as you possibly can. Don’t store all your eggs in one bag.

Which exchanges can I trust?




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