The leading crypto exchange Hotbit recently announced the platform’s decision to suspend all the CEX activities on May 22, at 4 UTC, requesting the users to withdraw their remaining assets before June 21. The platform stated that the firm’s move has been a consequence of mainly three reasons, including the deteriorating operating conditions, the changing trends of the crypto space as well as the risks and threats of the industry.
Hotbit shared a Twitter post sharing the platform’s regret in its new decision to ultimately stop the operations. The post cited “It’s time to take a bow”:
It's time to take a bow 🙇
— Hotbit News (@Hotbit_news) May 22, 2023
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…
Previously, in August 2022, Hotbit halted its website services, following which the platform witnessed a series of issues including the fall of the crypto giant FTX. Consequently, investors started withdrawing whopping amounts of their holdings, resulting in a reduction in cash flows.
While narrating about the volatile trends of the crypto industry, Hotbit pictured the two prevailing tendencies of the digital assets platforms amidst the stringent regulatory system. It stated that the platforms tend towards either embracing the regulation or becoming more decentralized.
In connection to the point, Hotbit explained its notions regarding the matter, quoting:
The Hotbit team believes that centralized exchanges (CEX) 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.
Further, Hotbit went on to explain the various risks that accompany the vast opportunities of the digital space, an aftermath of the “industry’s uncertainty”. The platform addressed the problems suffered by Hotbit, including cyber-attacks and other malicious activities which resulted in serious losses.
Collin Wu, the Chinese reporter tweeted the news, publicizing the new move from Hotbit:
Just In: Hotbit, an exchange with 5 million users, announced the suspension of operations today, and users need to withdraw their remaining assets before June 21; the core reason is the deterioration of the operating conditions, Hotbit management team was forced to suspend…
— Wu Blockchain (@WuBlockchain) May 22, 2023
The crypto trading platform asserted that despite the prosperous state of the exchange in the past, currently, “the operation model of supporting a diverse range of assets is unsustainable from a risk management standpoint”.
