Reasons Hotbit Stopped Crypto Trading Services On May 22 Yesterday

Hotbit stopped operating. (Photo; Doc. Coin Now)

JAKARTA Shocking news came from a leading crypto exchange based in Hong Kong, Hotbit. The crypto trading company reportedly stopped all of its services on May 22 yesterday.

The crypto exchangeer has 5 million users who have revealed a number of reasons for stopping its operations. There are three things that have caused Hotbit to close, including the declining operating condition of the Hotbit platform. Even so, the following are three causes of the closure of the crypto exchange according to the DailyHodl report.

First, the operating condition of this platform has experienced a significant decline. After the Hotbit management team was forced to stop operations for several weeks due to an investigation in August 2022, the industry experienced a series of crises, including the collapse of FTX.

Coupled with the banking crisis problem that caused the USDC incident to go off-peg, which resulted in constant disbursement of funds from centralized exchange users (CEX), including Hotbit, and worsening cash flow.

Second, there has been a change in the trend of the crypto industry. The successive collapse of large centralized crypto exchanges or Centralize Exchange (CEX) has prompted the industry to turn to one of the two directions: embrace regulations or become more decentralized.

Third, the Hotbit team believes that CEX is getting more and more complicated, with very complex and interconnected businesses. So it is difficult to meet compliance or decentralized requirements, and it is impossible to adapt to long-term trends.

Hotbit is one of the crypto exchanges forced to close its operations. This adds to the long list of crypto exchange closures after the collapse of FTX on November 11, 2022, which resulted in the arrest of its founder, Sam Bankman-Fried. This condition has rocked the crypto market at the time.