Cryptocurrency Exchange Hotbit Announces Permanent Closure

Summary:
Cryptocurrency exchange Hotbit has announced its permanent closure due to various challenges faced by the industry. The exchange cited a decline in cash flow linked to events such as the fall of FTX and the USDC depegging incident. Hotbit also mentioned that centralized exchanges are becoming cumbersome and highlighted the need for more decentralization or regulatory acceptance. Read full article below.

On May 22, the cryptocurrency trading platform Hotbit announced that it will be closing permanently. Users were urged to remove all funds from the exchange by June 21 at 4:00 am UTC. The exchange said in a statement that working conditions had worsened after an inquiry was conducted on a former employee in August 2022. The investigation apparently shut it down for a few weeks.

Hotbit blamed its drop on a number of events happening in the cryptocurrency industry. The decline in cash flow has been blamed on the fall of the FTX and the financial difficulties that led to the USDC depegging incident, the exchange said. According to Hotbit, a steady flow of money left centralized exchanges as a consequence of the occurrences.

Another Exchange Goes Down

The Hotbit group also considers centralized exchanges “increasingly cumbersome” and “unlikely to meet long-term trends.” According to the exchange, the only choices are more decentralization or acceptance of regulation.

The hacks and “project defects by malicious users” were also cited as contributing factors to the market’s demise. In the wake of the statement, numerous users said they were unable to get their funds out of the trading platform.

Members of the community have been alerted about phishing sites that seem to be official Hotbit exchange on google. As Hotbit winds down, other exchanges press on, with some even starting initiatives to address the problems plaguing the cryptocurrency sector.