Is Bybit rugging, or simply re-furnishing? So the shuttering of their Web3 initiatives – Cloud Wallet, NFT Marketplace, DEX Pro, the entire kit and caboodle – hurts. This hurts, and it’s most painful for the employees who were sold on Bybit’s Web3 vision. Countless others built their projects and livelihoods atop the crypto bunker that Bybit built. Let’s face it, in crypto, each promise lasts a shorter time than a gas fee on a bull run.

Forgotten Builders, Broken Promises?

Remember those early days of Web3? The dream of decentralization, empowerment, a global level playing field. Exchanges like Bybit, with their focus on NFTs, DEXs and general on-chain activity, appeared to be at the forefront. This bold covenant has drawn in developers, artists, creators – especially those from traditionally marginalized communities frequently excluded from traditional forms of finance. All of these characters have fully imbibed the Web3 Kool-Aid. They saw Bybit as a strategic partner in their shared vision of building a more inclusive future.

Now, the rug's been gently tugged. "Refocusing on core products," Bybit claims. Fine. But what does this mean for all the small businesses that have been cultivated on top of the NFT marketplace. The developers who added DEX Pro support to their apps? The creators and users who worked hard to earn their Web3 Points, only to watch the program disappear into thin air? These aren’t just digits on a spreadsheet, these are real people with real aspirations and ambitions.

I had a great conversation with Sarah, a brilliant digital artist from a small, rural, historically Black, underserved community. She used Bybit’s NFT marketplace to reach a wider audience and earn a living. “But for the first time,” she told me, her voice breaking slightly, “I felt like I was going to have a shot. Now, I’m back to square one. Where do I go from here? Sarah's story isn't unique. This is another stark reminder. In the crypto space, decentralization too easily turns into a convenient marketing slogan thrown around by centralized actors who can unilaterally change the rules.

Transparency Deficit: The Real Cost?

The absence of any clear or affirmative communication from Bybit is unacceptable. A simple "refocusing" doesn't cut it. What was this rubber band’s true motivation for shutting down? Was it the assumed $1.4 billion hack in February, requiring austerity? Or are they simply chasing the next shiny object, abandoning the commitments they’ve already made to their community?

The silence is deafening. It breeds distrust and fuels speculation. Trust is vital in any space, but especially in government. When that trust is just a magic show, playing games can be dangerous. Avalon’s Bitcoin yield product By contrast, Avalon’s new offering seems like a band-aid on an unabashed gaping wound. Earning yield on Bitcoin is great, but it doesn’t address the fundamental issue: trust has been broken.

Think about it this way: imagine your local bakery suddenly stopped selling bread, claiming they're "refocusing on cakes." Fair enough, cakes are lovely – but what does that do for all of the folks who used to depend on that little bakery for their daily bread? What about the implicit social contract? This analogy is of course imperfect, but it gets at the heart of a major frustration. Most Bybit users must be reeling from the sense of having been sandbagged.

Web3's Future: Centralized Control?

Bybit's exit raises a critical question: are centralized exchanges ultimately incompatible with the Web3 ethos? Can we really hope to create a decentralized future on platforms that act with this level of opacity and one-sided decision-making authority?

This isn't just about Bybit. It’s less about the specific entity and more about the larger movement toward centralized players having significant power in the Web3 ecosystem. It’s really about the troubling power imbalance between exchanges and their communities, corporations and the communities they affect.

Bybit’s move could be either a backstab or an indictment against the industry, and an understanding of what the future must look like. Only time will tell. One thing is certain: the voices of the forgotten builders must be heard. Here’s hoping we can learn from this misstep. Together, we can build a Web3 that is decentralized, inclusive, and accountable to our network. This requires action. Use decentralized exchanges. Support developers building on truly open-source platforms. Demand more from the centralized players. Let's build a better future, together.

  • Demand Transparency: We need to hold centralized exchanges accountable. We need to demand clear explanations for their decisions and greater transparency in their operations.
  • Support Decentralized Alternatives: Let's champion truly decentralized platforms – DAOs, open-source projects, community-led initiatives – that prioritize user empowerment and inclusivity.
  • Build Stronger Communities: We need to build resilient communities that can withstand the volatility and rug pulls that are all too common in the crypto world.

Bybit's decision might be a betrayal, or it might be a necessary step towards a more sustainable future. Only time will tell. But one thing is certain: the voices of the forgotten builders must be heard. We need to learn from this experience and build a Web3 that is truly decentralized, inclusive, and accountable to its community. This requires action. Use decentralized exchanges. Support developers building on truly open-source platforms. Demand more from the centralized players. Let's build a better future, together.