I came to the realization today; The Cryptarch is Gamestop in disguise. Here, let me explain.
GameStop will take in your new games and in return give you a crappy "reward" and then flip that item for almost full retail price.
The Cryptarch takes in your new engrams and in return gives you a crappy "reward"(legendary engrams turns into rare items)and then he flips that engram with his Cryptarch buddies and gets himself Legendary Gear with the engram you gave him.
Mind = Blown
What do we do about this Guardians?
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This post is too funny. My gf and I are newbies to the game, and came to this conclusion recently. Now we'll load up on engrams and make a game of it when we visit this dude. Haven't received a legendary yet for my hunter aside from some armor for a Titan.