Hotbit officially announced that it will stop all CEX operations from May 22, 4:00 UTC after more than 5 years of operation. All users are required to withdraw their remaining assets before June 21, 4:00 UTC.
There are 3 main reasons why Hotbit decided to stop working:
- The operating conditions are getting worse: Users are constantly withdrawing assets from the exchange after many shocking events such as the collapse of the FTX exchange or bank crises.
- The change in the crypto industry trend: Hotbit tea believes that CEX exchanges are becoming increasingly cumbersome with highly complex and interconnected businesses that are difficult to comply with, whether for compliance or decentralization, and are unlikely to meet long-term trends.
- Hotbit suffered many attacks: The exploitation of project defects by malicious users, resulting in significant losses.
Earlier on August 8, Hotbit also suspended trading, deposit, withdrawal, and funding functions. The reason given by Hotbit at that time was because a former manager of the exchange, who left the company in April 2022, was involved in a project that was being investigated for criminal charges. Authorities have frozen part of the exchange’s assets, disrupting operations.
According to CoinMarketCap, last year, Hotbit had a 24-hour trading volume of up to 350 million USD. However, this figure is now just over $44 million. HTB, Hotbit’s token, is down 5% from 0.002924 to 0.002893 at the time of writing.
