In a bold yet tumultuous move, crypto exchange Hotbit is calling it quits on May 22. The platform has made an urgent plea to its user base to withdraw their digital assets before June 21, at 4:00 am UTC, signalling a ticking clock on a once-thriving exchange.
Hotbit’s curtain call comes after a series of unfortunate events, which have weighed heavy on the platform’s operations. A significant setback was an investigation launched in August 2022, focused on a former team member. This probe brought the exchange to a standstill for weeks, sending ripples through the Hotbit community.
The crypto market, known for its volatility, didn’t do Hotbit any favors either. The FTX collapse, coupled with banking crises triggering a USD Coin depegging event, were major blows to the platform’s cash flow. Continuous outflows from centralized exchanges, like Hotbit, were the nail in the coffin. The crypto exchange is now firmly of the view that centralized systems are more of a burden than a boon, suggesting a pivot towards more decentralized models or embracing regulation.
Hotbit’s decline is also attributed to continuous cyberattacks and exploitation of platform vulnerabilities by malicious users. Users have now reported issues with withdrawing their assets, while phishing links, masquerading as Hotbit’s official site on Google, are lurking on the horizon. But as Hotbit takes its final bow, other exchanges are stepping up to the plate. Coinbase and OKX are launching campaigns to ‘update’ and ‘rewrite’ the system, demonstrating resilience in the face of crypto adversity.