Bybit, one of the world’s largest cryptocurrency exchanges, is retrenching in Web3. It will be shutting down a number of its services, including its NFT marketplace and Web3 Points loyalty program. It was a surprise move for the platform, which lost $1.4 billion in a hack in mid-February. Now, it’s doubling down on all of that in perfecting its core products. The exchange has shared dates of service shutdowns that have been scheduled throughout April and May on its website.
This difficult decision to discontinue these services has been made in keeping with Bybit’s pivoting strategy to concentrate focus on primary offerings. The privately-held company out to improve the quality and reliability of its core products to serve its diverse core user base.
Web3 Services to Cease Operations
Bybit will shut down its Web3 Points program on April 28, marking the end of its in-house loyalty scheme. It is not alone – a handful of other Web3 services are shutting their doors on May 31.
These include the Cloud Wallet, Keyless Wallet, multi-chain decentralized exchange (DEX) DEX Pro, Swap & Bridge cross-chain swap widget, inscription marketplace, decentralized NFT marketplace NFT Pro, and its gateway to the Apex Pro derivatives DEX. The cancellation of these services represents a major retreat from Bybit’s Web3 presence.
Background and Strategic Shift
The road to this Web3 closure comes after Bybit’s $90 million loss earlier this year. The exchange has not publicly acknowledged the details of the February hack. By most accounts, including a recent interim government report, at least $1.4 billion was lost in the tragedy.
Bybit vehemently refutes the allegations of overcharging fees for listing tokens. In particular, they deny that they charge a $1.4 million listing fee. As of publishing time, Bybit had not responded to Cointelegraph’s request for comment.
Future Direction
Bybit’s decision to shutter its Web3 products indicates a redirection of resources and focus back on the platform’s fundamental exchange operations. To that end, it seems the company is shrinking its footprint to double-down on making its flagship trading platform and surrounding experience the best it can be.
This change could foretell a larger trend in the cryptocurrency space, as exchanges reconsider their products and refocus on long-term viability. By concentrating on its fundamental advantages, Bybit seeks to establish the cryptocurrency exchange with the best reputation and functionality.
