The Crest downgrade NPC is selling unusable crests. Do NOT downgrade your crests at this time. As with previous Seasons, Season 4 includes a new NPC which allows you to downgrade your crests.
This NPC, Vaskarn, is located outside the Auction House in the center of Valdrakken. Here's the inventory: Pouch of Whelpling's Awakened Crests — 15 Drake's Awakened Crest Satchel of Drake's Awakened Crests — 15 Wyrm's Awakened Crest Clutch of Wyrm's Awakened Crests — 15 Aspect's Awakened Crest Ignoring the fact that the text indicates it awards «Dreaming Crests», these items are supposed to allow you to trade down your Crest when you want more of a lower type.
Want more Whelpling Crests to buy some Nascent Whelpling's Awakened Crest or Wyrm's Crests for gear upgrades? DONT. These bags are giving the wrong type of Crest.
There are two of each type of Crest — one is a hidden currency, Whelpling's Awakened Crest (ID: 2805), and the other one is actually usable for Gear Upgrades and buying things off a vendor, Whelpling's Awakened Crest (ID: 2806).
Right now, these bags are giving the hidden currency, making them completely unusable for gear upgrades or spending them at a vendor.