Hotbit, one of the leading cryptocurrency exchanges in the world, has announced that it will end its exchange service by the end of this month. The decision comes after a series of regulatory challenges and security breaches that have affected the platform’s operations and reputation.
Hotbit through a tweet said that it will focus on its other businesses, such as blockchain development and consulting, and that it will provide a smooth transition for its existing customers.
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
Hotbit thanked its loyal users and partners for their support and cooperation over the years and apologized for any inconvenience caused by the closure. Hotbit also assured that it will comply with all legal obligations and protect the rights and interests of its customers and stakeholders. Hotbit also encouraged its users to withdraw their assets from the exchange as soon as possible, and to contact its customer service team for any questions or issues.
However, following WikiCatCoin recent listing partnership with Hotbit Exchange, SMCDAO has wrote to the community for members who have their $WKC stored on the exchange should by virtue of necessity withdraw their assets to a more secured decentralized infrastructure pending when SMC Wallet is available for usage.
WikiCatCoin Statements on HotBit Winding Up
It has come to our attention that Hotbit will be ceasing all centralized exchange (CEX) operations starting from May 22, UTC 04:00. We strongly advise all Wiki Cat users who have funds on Hotbit to withdraw their assets before June 21, UTC 04:00.
Hotbit has been a valued exchange in the crypto industry for over five years, serving millions of users worldwide. However, due to several factors, the decision to halt CEX operations has been made.
The first reason behind this decision is the deteriorating operating conditions. Following the Hotbit management team’s temporary suspension of operations in August 2022, the industry has faced various crises, including the FTX collapse and bank crises resulting in fund outflows from CEX platforms. These events have put a strain on Hotbit’s cash flow and overall operations.
The second reason is the evolving trend in the crypto industry. The collapse of centralized institutions has pushed the industry towards two paths: embracing regulation or embracing decentralization. The Hotbit team believes that CEX platforms are becoming increasingly complex and difficult to comply with in terms of both regulation and decentralization. They foresee the long-term trend moving away from centralized exchanges.
Hotbit has been known for its extensive range of assets and value-added services. They were pioneers in listing emerging assets like SHIB, KSM, GRIN, and more. Additionally, they were the first to offer staking services and conduct Defi mining using Compound. However, due to the industry’s uncertainty and the risks involved, supporting such a diverse range of assets has become unsustainable from a risk management perspective.
We understand that this news may come as a disappointment, but it is important to take the necessary steps to secure your assets.