Centralized exchanges, according to Hotbit, are getting more complicated and are “unlikely to meet long-term trends.”
Hotbit has made the decision to cease operations and has urged users to take their money out before June 21. Since a team member’s investigation in 2022, the exchange’s operational conditions have gotten worse, resulting in a brief stoppage of operations.
Impact of Crypto Incidents and Cash Flow Challenges
Hotbit attributes its decreased cash flow to a number of crypto-related events, including as the FTX crash and the USD Coin depegging event. A consistent drain of money from centralized exchanges was caused by these instances.
Centralized exchanges, in the opinion of Hotbit, are getting more and more inefficient and are not likely to keep up with long-term trends. The exchange places a strong emphasis on the possibilities of increasing decentralization or adopting regulation as vital stages for future success.
Hotbit lists additional causes of its demise as the recurrent cyberattacks it experienced and the malicious users’ exploitation of project flaws.
Looking Ahead and the Future of Hotbit
As Hotbit shuts down, the exchange considers the difficulties it has encountered and the necessity for improvements in the cryptocurrency sector. Users are urged to remove their money as soon as possible, and it considers future directions.
As the announcement came, several members of the community reported that they were unable to withdraw their funds from the exchange.
Some also warned community members of phishing links that pretend to be the official Hotbit exchange on Google.