💡 **The Fascinating Tale of Zhao Tong and Bitcoinica**

In 2010, Zhao Tong, a Chinese teenager, entered the world of cryptocurrency with a $10 investment in Bitcoin, captivated by its potential as a global digital currency.

🌍 **Early Challenges and Interest**

- At 16 years old, Zhao faced difficulties purchasing Bitcoin in 2011.

- Mt. Gox, the largest exchange, often went offline and suffered a flash crash that saw Bitcoin's price drop to $0.01 shortly after Zhao's initial purchase.

🔧 **Creation of Bitcoinica**

- A self-taught coder, Zhao built Bitcoinica in just four days.

- Bitcoinica distinguished itself by allowing margin trading, enabling users to speculate on Bitcoin's future price.

- The platform quickly gained popularity, trading up to $40 million monthly, ranking second only to Mt. Gox.

- Zhao made $10,000, or about 2,000 BTC, in the first two weeks alone.

📈 **Growth and Challenges**

- Despite rapid growth, Bitcoinica faced skepticism due to Zhao's age and concerns about security.

- Critics doubted the platform's safety, but it continued to handle large volumes of Bitcoin trades.

🔑 **Transfer and Subsequent Hacks**

- Overwhelmed by school exams, Zhao sold Bitcoinica to Wendon Group in late 2011.

- Wendon Group invested heavily, acquiring the Bitcoin.com domain for $1 million.

- Disaster struck in March 2012 when Bitcoinica was hacked, losing 43,000 BTC, followed by two more hacks resulting in the loss of another 48,000 BTC.

- Bitcoinica's security flaws, including vulnerability to password resets, contributed to these incidents.

🔔 **Aftermath and Legacy**

- The hacks caused outrage among users, including notable losses for investors like Roger Ver.

- Zhao's reputation was damaged, and "Zhao Tonged" became a meme for those who lost funds due to hacks.

- Before leaving the industry, Zhao invested 1,000 BTC in a rare solid gold Casascius coin, now worth over $60 million.

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