Cryptobridge was a decentralized, peer-to-peer cryptocurrency exchange that made a name for itself by offering a trustless trading environment without centralized control. It operated from 2017 until 2019, allowing users to trade directly from their wallets, keeping ownership of their private keys and funds. Known for its wide range of tokens, including many that were not listed on larger exchanges, Cryptobridge stood out in the crypto space. This article explores what Cryptobridge was, its technology, and the reasons behind its shutdown.

Background and Introduction

Cryptobridge was launched in 2017 as part of the broader movement toward decentralized exchanges (DEXs). These DEXs were seen as a solution to the security vulnerabilities and regulatory risks associated with centralized exchanges. Built on the BitShares blockchain, Cryptobridge offered a decentralized order book for trading, allowing users to trade directly between themselves without transferring funds to the platform.

The platform was operated by CryptoBridge DEX, based in Denmark, and supported a wide range of cryptocurrencies. The exchange’s native token, BridgeCoin (BCO), was used to power the ecosystem, providing staking rewards and enabling revenue-sharing for users.

Decentralized Design

The biggest selling point of Cryptobridge was its decentralized nature. Unlike traditional exchanges that hold user funds, Cryptobridge allowed users to retain control of their private keys throughout the trading process. Transactions were made directly on the BitShares blockchain, and users could create blockchain-based tokens (smartcoins) that represented real assets on other blockchains, which could be exchanged within the BitShares network.

This design provided users with more control over their funds but came at the cost of slower transaction times and a more complex onboarding process for new users.

Supported Assets and Trading Pairs

Cryptobridge supported a wide variety of cryptocurrencies, including major coins like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), as well as lesser-known altcoins and new tokens. This broad asset base made it an attractive option for traders looking to explore new projects and tokens not available on larger exchanges.

Listings on Cryptobridge were often decided by community voting or a listing fee, which provided an opportunity for smaller projects to gain exposure and liquidity without needing approval from larger centralized exchanges.

User Experience and Interface

Cryptobridge was available via a desktop client and web application. The platform featured basic charting tools, order books, trade history, and asset management functionalities. However, the user experience was not as polished as on centralized exchanges, and because trades were conducted on the BitShares blockchain, confirmations were slower, and new users faced extra procedures for depositing and withdrawing funds.

Despite the added complexity, Cryptobridge was valued for its speed and simplicity once users became familiar with the platform. However, the exchange required trust in the operators of the blockchain gateways, which somewhat undermined its decentralized ideals.

BridgeCoin (BCO) and Staking Model

BridgeCoin (BCO) was the native token of Cryptobridge and played multiple roles within the ecosystem:

  • Staking: BCO holders could stake their tokens to earn a percentage of revenue from the exchange.

  • Liquidity: BCO also provided liquidity support for the exchange and encouraged user activity.

The staking model allowed users to lock up their tokens for a fixed period, during which they could earn a share of the trading fees. While this model attracted long-term investors, the value of BCO fluctuated significantly based on platform activity and user interest.

Challenges and Shutdown

Although Cryptobridge started with strong potential, it faced significant competition in 2019 from more user-friendly decentralized exchanges like Binance DEX, Uniswap, and IDEX. These platforms offered a more seamless user experience and greater liquidity.

At the same time, increased regulatory scrutiny and high compliance costs took a toll on smaller exchanges like Cryptobridge. The team officially announced the shutdown in December 2019, citing reasons such as low trading volume, declining user interest, high operational costs, and lack of profitability.

Upon closure, BCO lost nearly all of its value and was delisted from most exchanges, leaving users with a short window to withdraw their funds.

Ranking in the Crypto Community

Despite its closure, Cryptobridge was an important part of early decentralized exchange history. It proved that decentralized trading without custodial control was possible and offered a community-driven model that allowed smaller projects to gain exposure.

However, it also highlighted the challenges faced by decentralized exchanges, including security, liquidity, usability, and navigating the ever-changing regulatory landscape. Cryptobridge served as an early example of what decentralized finance (DeFi) could be, long before the term became widely recognized.

How to Interact with the BitShares Ecosystem After Cryptobridge

Even though Cryptobridge is no longer active, its technology still lives on within the BitShares network. For those interested in what Cryptobridge represented, the following options remain:

  • BitShares DEX: The decentralized trading engine used by Cryptobridge is still operational on BitShares.

  • OpenLedger: Another DEX using BitShares technology.

  • BitShares Wallets: Third-party apps that are compatible with the BitShares blockchain.

Some of the tokens initially listed on Cryptobridge are still tradable on other decentralized exchanges or available on different blockchains, like Ethereum.

Conclusion

Cryptobridge was an early experiment in truly decentralized cryptocurrency trading. By allowing users to retain control of their private keys and trade directly on the blockchain, it introduced a more secure and community-driven model. However, its struggles with user experience, liquidity, and regulatory issues ultimately led to its shutdown in 2019.

Despite its closure, Cryptobridge’s impact on the decentralized exchange space remains significant. It demonstrated the potential for decentralized trading, but also the challenges such platforms face in terms of security, liquidity, and regulatory compliance. Today, the lessons learned from Cryptobridge continue to influence the development of new decentralized trading platforms and the broader DeFi ecosystem.