The "Mentougou Incident": The Most Painful Lesson in Early Bitcoin
In 2014, one of the world's largest Bitcoin exchanges—(Mentougou)—suddenly announced the loss of 850,000 Bitcoins, accounting for more than 6% of the total circulating supply at the time. When the news broke, the entire cryptocurrency community was shaken, and the market plummeted instantly, with countless investors losing their assets.
Subsequent investigations revealed that the exchange had not been suddenly hacked, but rather had been plagued by long-term mismanagement and accumulated loopholes over the years, which no one had taken seriously. The so-called "security system" was essentially non-existent, and a large number of Bitcoins had quietly been transferred years ago, while the platform continued to operate normally until its collapse, without any warning.
Mentougou tells everyone:
The cryptocurrency world is not without risks, but the risks are magnified a hundredfold.
No matter how large the exchange is, it can still go under; no matter how bright the project is, it could still be a scam. Putting all assets on one platform is equivalent to handing over your life to others.
True safety comes from: diversifying risks, controlling private keys, staying away from the temptation of huge profits, and maintaining independent judgment.
History does not repeat itself, but it does rhyme. Every time a disaster strikes, it reminds future generations: speculation is fine, blind faith is not.
