Hotbit Exchange Ceases CEX Operations After 5 Years of Service
Hotbit has announced its decision to halt all centralized exchange (CEX) operations starting from May 22. This news comes as a surprise to the crypto community, as Hotbit has been actively serving over 5 million users for the past 5 years and 4 months.
Hotbit’s management team expressed their regret in making this decision, stating that it was based on three primary reasons. Firstly, the deteriorating operating conditions have posed significant challenges.
Following a suspension of operations in August 2022 due to an investigation, the industry has faced multiple crises, including the collapse of FTX and bank crises leading to incidents with USDC’s peg. These events have resulted in a continuous outflow of funds from CEX users, including Hotbit, and a subsequent decline in cash flow.
It’s time to take a bow 🙇
For 5 years and 4 months, the Hotbit team has been proud to participate in a wonderful crypto show with 5 million users. However, it is with great regret that we have made the decision to stop all CEX operations from May 22, UTC 04:00. We kindly ask all…
— Hotbit News (@Hotbit_news) May 22, 2023
Secondly, the team acknowledged the changing trend within the crypto industry. The successive collapses of large centralized institutions have prompted a shift towards embracing regulation or adopting a more decentralized approach. Hotbit believes that CEX platforms are becoming increasingly burdensome due to their complex and interconnected nature, making compliance and decentralization difficult to achieve. In the long term, this approach is unlikely to align with industry trends.
Hotbit has been known for providing a wide range of assets and value-added services since its inception. The exchange was a pioneer in listing emerging assets like SHIB, KSM, and GRIN. Additionally, it was the first to offer staking services starting with ATOM and ventured into DeFi mining using Compound. However, the team acknowledges that the industry’s uncertain nature brings both opportunities and risks. Hotbit has faced various challenges, including repeated cyber attacks and malicious exploitation of project vulnerabilities, resulting in significant losses. Consequently, the team believes that supporting a diverse range of assets is unsustainable from a risk management perspective.
In their announcement, the Hotbit team expressed their gratitude to the users and bid farewell to their journey in the crypto industry. They remain optimistic about the future of crypto innovation, with some team members committed to continuing the fight for it.
Hotbit has requested all its users to withdraw their remaining assets before June 21 to ensure a smooth transition. It marks the end of an era for Hotbit, a platform that has played a significant role in the crypto show for over five years. While the decision to cease CEX operations may come as a disappointment to many, it reflects the evolving landscape and challenges faced by cryptocurrency exchanges in today’s market.
As the crypto industry continues to evolve, it remains to be seen how other exchanges will adapt and navigate the changing trends and regulatory landscape.
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