Charlie Shrem Revives Bitcoin Faucet, Aims to Boost Early Adoption
2min read Charlie Shrem, an early Bitcoin entrepreneur, has announced his plans to revive the Bitcoin faucet, a website that distributes Bitcoin to users who complete CAPTCHA tasks. Shrem shared his new Bitcoin faucet website, 21million.com, on May 4, which closely resembles the original Bitcoin CAPTCHA page created by Gavin Andresen in 2010. The website currently displays a CAPTCHA task and a box for users to enter their Bitcoin receiving address, although it was not functional at the time of writing. Shrem's website also explains what Bitcoin is and how to receive it, similar to Andresen’s original page.
Shrem emphasized that there is no catch to his Bitcoin faucet, stating, “I want Bitcoin to be successful, so I created this little service to give you a few coins to start with.” When asked about the development process, Shrem mentioned that he is “vibe coding” the project, relying on artificial intelligence and prompting to write code. This approach, he noted, is a lot of fun for him.
Bitcoin faucets played a crucial role in the early adoption of Bitcoin. Andresen’s Bitcoin Faucet page distributed 19,700 Bitcoin, which is now worth a significant amount, by rewarding users for solving CAPTCHAs. Users could earn up to 5 Bitcoin per day, encouraging wallet creation and transactions, which helped expand Bitcoin’s user base and network activity. Other websites like FreeBitco.in also offered similar services between 2011 and 2013, but as Bitcoin’s price and transaction fees increased, the model became unsustainable.
Shrem’s journey in the crypto space has been eventful. He co-founded BitInstant, one of the first Bitcoin exchanges, with Gareth Nelson in 2011. At its peak, BitInstant facilitated around 30% of all Bitcoin transactions. The exchange purchased Bitcoin from Mt. Gox in large batches and resold it to customers nearly instantly, offering a service that Mt. Gox lacked. However, BitInstant faced scaling issues as its transaction volume grew, leading to the need for additional funding from early Bitcoin investors.
Shrem also co-founded the Bitcoin Foundation in 2012, serving as vice chairman to promote Bitcoin as an alternative to traditional banking. However, his career took a turn when he was arrested in 2014 for money laundering related to his role with BitInstant. Authorities claimed that some BitInstant customers used the Bitcoin purchased from the exchange for illicit purposes, including criminal transactions on the Silk Road dark web marketplace. Shrem pleaded guilty to a reduced charge and served one year in prison before being released in 2016.
Ask Aime: Charlie Shrem's new Bitcoin faucet website aims to revive early adoption fun.
After his release, Shrem returned to the crypto space, founding CryptoIQ, a crypto advisory firm, and Druid Ventures, a $13 million crypto-focused venture capital fund. He also launched The Charlie Shrem Show, a podcast featuring notable figures in the crypto industry. In 2018, Shrem was sued by the Winklevoss twins, who claimed he stole 5,000 Bitcoin from them in 2012. The case was settled confidentially in 2019, with a court overturning an asset freeze against Shrem and ordering the brothers to cover his legal fees.
