SNEAK PEEK
- Hotbit has announced to stop all CEX operations from today, UTC 04:00.
- Damage to operating conditions and the crypto industry’s change in trend are major reasons behind the decision.
- Hotbit is hopeful about crypto’s bright future and will continue to stand by it.
After being in the crypto world for 5 years and 4 months and earning a massive 5 million users, Hotbit has announced stopping its CEX operations today, i.e., May 22, UTC 04:00. Users have been asked to withdraw their assets before June 21, UTC 04:00.
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
Mostly, there are three reasons behind the decision.
The number one reason is the degradation of the operating conditions. An investigation in August 2022 forced the management team at Hotbit to suspend its operations for many weeks. Various crises have hit the industry, such as the FTX collapse and bank crises leading to USDC off-peg events. All this led to the consistent drainage of money from users of centralized exchanges, including Hotbit.
Coming to the second reason, the crypto industry is undergoing change, which is to be blamed. Large centralized institutions falling has given the industry two choices, i.e. welcome the regulation or turn even more decentralized.
According to the Hotbit team, centralized exchanges are becoming increasingly inconvenient, with extremely complicated and interlinked businesses that are not easy to deal with, be it for decentralization or compliance. Also, they do not seem to fulfill long-term trends.
As far as the third reason is concerned, Hotbit has always been defined as offering an extensive variety of assets as well as value-added techniques. It was Hotbit only that initially listed many emerging assets such as GRIN, SHIB, KSM, etc. Furthermore, it was the first to provide staking services beginning with ATOM and the first to organize a decentralized finance mining business by using Compound.
As the industry is unpredictable, many opportunities include risks. Hotbit has faced many issues, like back-to-back cyber attacks and project defects’ exploitation by mischievous users, that led to major losses. Thus, Hotbit believes that the operation model based on supporting a range of assets can’t be sustained from a risk management point of view.
