Hotbit, an exchange with nearly 5 million users, announced today that it is suspending its operations. Users need to withdraw their remaining assets before June 21st.
Hotbit Exchange Suspends Operations
The Hotbit management team had to suspend operations for several weeks due to the investigation in August 2022.
The industry has experienced a series of crises, including the collapse of FTX, bank crises that led to USDC off-peg events, resulting in continued outflow of funds and worsening cash flow from CEX users, including Hotbit.
The collapse of great centralized institutions, one after another, gradually led the industry in two ways. Either adopt regulation or become more decentralized.
The Hotbit team believes that centralized exchanges (CEX) are becoming increasingly cumbersome, highly complex and interconnected businesses that are difficult to comply with for compliance or decentralization and are unlikely to meet long-term trends.
Since its inception, Hotbit has been characterized by offering a rich variety of assets and value-added methods.
Hotbit is the first exchange to list a large number of emerging assets including SHIB, KSM, GRIN and the like, and is the first exchange to offer staking services starting from ATOM and run Defi mining business using Compound.
However, due to the uncertainty of the industry, various opportunities also involve many risks. Hotbit has also experienced numerous issues, such as repeated cyberattacks and exploitation of project flaws by malicious users.
This resulted in significant losses. Therefore, the Hotbit team believes that the operating model to support various assets is unsustainable in terms of risk management.
*Not investment advice.
