Hotbit exchange users have been advised to remove their cash immediately
Centralized exchange, Hotbit growing more inconvenient and are “unlikely to meet long-term trends.”
Hotbit, a cryptocurrency trading platform, has said that it would cease operations as of May 22. The exchange requested that all withdrawals be completed prior to 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 reportedly shut it down for a few weeks.
The Hotbit team also thinks that centralized trades are becoming “more complicated” and “unlikely to keep up with long-term trends.” According to the market, the only choices are more decentralization or acceptance of regulation.
The hacking and “project defects by malicious users” were also cited as contributing factors to the collapse of the market.
Several users said they were unable to get their funds out of the exchange at the time of the announcement.
Members of the community have been cautioned about fake Google Hotbit URLs that attempt to steal personal information.
As Hotbit winds down, other exchanges press on, with some even starting initiatives to address the problems affecting the cryptocurrency sector. Coinbase, a cryptocurrency exchange, has issued an initiative to “update the system.” OKX went further; it intends to “rewrite the system” from the ground up.