Crypto exchange Hotbit has announced that it will halt operations as of May 22. The exchange is asking its users to withdraw funds before June 21, 4:00 am UTC. Hotbit cited various incidents, such as the FTX collapse and the banking crisis, which caused the USD Coin (USDC) depegging event, as contributors to its decline. Hotbit said these incidents resulted in a continuous outflow of funds from centralized exchanges. Additionally, the exchange blamed the repeated cyberattacks and the exploitation of “project defects by malicious users” for its downfall. The Hotbit team believes that centralized exchanges are becoming “increasingly cumbersome” and unlikely to meet long-term trends. The exchange said the only options are to become more decentralized or embrace regulation.
Hotbit’s operating conditions have deteriorated since a former member of its team was subjected to an investigation in August 2022, which forced the exchange to stop business for weeks. As the announcement came, several members of the community reported that they were unable to withdraw their funds from the exchange, and others warned community members of phishing links that pretend to be the official Hotbit exchange on Google.
While Hotbit is taking its bow, other exchanges are carrying on, with some launching campaigns to fix the issues in the crypto industry. Crypto exchange Coinbase recently published a campaign to “update the system”, and OKX took it a step further by stating they want to “rewrite the system” entirely. As always, with every downfall, the crypto industry must adapt and improve to meet long-term trends.