From novelty to nostalgia: New Liberty Standard’s crypto legacy

When the exchange emerged in October 2009, bitcoin saw its price rise above $0 for the first time based on pioneering methods used to calculate its value

article-image

lunamarina/Shutterstock, modified by Blockworks

share

Wednesday marked the 14th anniversary of the world’s first crypto exchange, the New Liberty Standard, once considered a pioneer that led the earlier days in digital assets trading.

When the exchange first emerged in October 2009, bitcoin (BTC), a relatively unknown digital asset back then, saw its price rise above $0 for the very first time.

The New Liberty Standard was one of the earliest attempts at establishing a market value for bitcoin based on real-world commodities, specifically the cost of electricity used to mine them.

By calculating the average amount of electricity required to run a high CPU computer for a year and taking into account the average residential cost of electricity in the US, the platform established the first formal method for calculating bitcoin’s value.

The equation divided $1.00 by the annual electricity cost, further divided by the number of bitcoin produced over a month by the computing unit. Its formula became the gold standard for the budding crypto market during that period.

As with many early industry initiatives, it didn’t remain dominant for long. 

Over time, the New Liberty Standard faded into obscurity and its website eventually went offline. The specifics surrounding its decline are not widely documented, and there is limited information available about its later activities or why it ceased operations.

What’s clear, however, is that as bitcoin and other cryptos gained traction, a variety of more sophisticated exchanges and platforms emerged. 

These newer platforms offered advanced trading features, more security and a better user experience, likely contributing to a shift away from early platforms.

Even still, it’s worth noting that even if the New Liberty Standard itself did not persist, its contributions to the early days of cryptocurrency valuation and exchange remain a significant part of bitcoin’s history.

Happy birthday New Liberty Standard. May you rest in peace.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

Maple Finance has successfully navigated significant market challenges through its strategic pivot to secured lending (Maple v2) and the launch of its Syrup product. Syrup has become a primary growth driver, delivering sustainable, outperforming stablecoin yields and rapidly increasing TVL. The upcoming custody-first Bitcoin staking product (istBTC) presents another significant avenue for expansion. Crucially, Maple has achieved operational profitability, a key inflection point that, combined with a fully vested token and active buyback mechanism, strengthens its investment case. While valuation metrics suggest potential undervaluation relative to peers and growth, the primary forward-looking risk identified is the long-term sustainability of its current high-take-rate collateral staking revenue model.

article-image

In 2014, Microsoft virus scanners were detecting viruses in Bitcoin software

article-image

Ledn’s Mauricio Di Bartolomeo explained how this cycle’s been different for the lender

article-image

The shorts looking for funding range from charming animated series to gritty live-action dramas

article-image

Money, it turns out, is emergent, like consciousness

article-image

Bridge flows churn in both directions as risk appetite returns

article-image

Even with an uncertain outlook thanks to tariffs, Big Tech executives are still ramping up their AI investments