Bitcoin exchange Hotbit has announced its decision to cease all centralized exchange (CEX) transactions from May 22. This news came 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. Here are the details…
Surprising stop decision from Bitcoin exchange
Hotbit’s management team expressed their regret at taking this decision. He stated that this decision was based on three main reasons. First, the deteriorating operating conditions created significant challenges. cryptocoin.com As we reported, following the suspension of operations due to an investigation in August 2022, the industry has faced multiple crises, including the collapse of FTX and the bank crises that led to events with the peg of USDC. These events resulted in a continued outflow of funds from CEX users, including Hotbit, followed by a drop in cash flow.
Second, the team acknowledged the changing trend in the crypto industry. The successive collapses of major centralized institutions led to a shift towards adopting 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. In the long run, this approach is unlikely to align with industry trends, according to the stock market.
Users need to withdraw their assets before June 21
Since its inception, Hotbit has been known for offering a wide array of assets and valuable services. The exchange was a pioneer in listing emerging assets such as SHIB, KSM, and GRIN. It was also the first company to offer staking services, starting with ATOM, and to engage in DeFi mining using Compound. However, the team acknowledges that the uncertain nature of the industry brings both opportunities and risks. Hotbit has faced several challenges, including repeated cyberattacks and malicious exploitation of project vulnerabilities. This resulted in significant losses. As a result, the team believes that supporting a wide variety of assets is unsustainable in terms of risk management.
The Hotbit team expressed their gratitude to the users in their announcement. He said goodbye to his journeys in the crypto industry. They remain optimistic about the future of crypto innovation, and some team members are determined to continue fighting for it. Hotbit has asked all its users to withdraw their remaining assets before June 21 to ensure a smooth transition. This marks the end of an era for Hotbit, a platform that has played an important role in the crypto space for over five years. While the decision to cease CEX operations was disappointing to many, it reflects the changing landscape and challenges facing cryptocurrency exchanges in today’s market.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.