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Hotbit, a prominent cryptocurrency exchange, has announced its decision to suspend operations starting May 22. The exchange has urged its users to withdraw their funds before June 21, at 4:00 am UTC.
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
In an official statement, Hotbit attributed its decision to deteriorating operating conditions since one of its team members became the subject of an investigation in August 2022. The resulting probe forced the exchange to halt business operations for several weeks, negatively impacting its overall performance.
Furthermore, Hotbit cited various incidents within the cryptocurrency space that have contributed to its decline. The exchange specifically mentioned the collapse of FTX and the banking crises that led to the USD Coin depegging event, both of which significantly affected its cash flow. Hotbit emphasized that these events resulted in a continuous outflow of funds from centralized exchanges.
Hotbit’s management team also expressed concerns regarding the increasing burden of centralized exchanges, stating that they are “unlikely to meet long-term trends.” The exchange proposed two potential paths forward: either embracing decentralization or adhering to regulatory measures.
Additionally, Hotbit acknowledged repeated cyberattacks and the exploitation of “project defects by malicious users” as key factors that contributed to its downfall.
Following the announcement, numerous users reported difficulties in withdrawing their funds from the exchange. Community members have also cautioned others about phishing links masquerading as the official Hotbit exchange on Google, urging caution and vigilance.
While Hotbit takes a step back, other cryptocurrency exchanges continue their operations and are actively addressing industry challenges. Coinbase recently launched a campaign to “update the system,” aiming to address existing issues, while OKX has taken a more radical approach, seeking to “rewrite the system” entirely.
As Hotbit’s closure marks a significant event in the crypto industry, the community eagerly awaits developments from other exchanges striving to overcome the current obstacles and shape the future of digital asset trading.
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