Crypto exchange Bybit is making a major strategic shift by significantly reducing its presence in the Web3 space. After recently shutting down its NFT marketplace, the platform is now preparing to discontinue multiple other services, including its wallets and DeFi tools.
Wallets and DEX Services to Be Discontinued
In an announcement dated April 16, Bybit revealed that it will shut down the following products by May 31:
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Cloud Wallet (custodial wallet)
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Keyless Wallet (non-custodial wallet using MPC without seed phrases)
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NFT Marketplace
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DEX Pro, a multi-chain decentralized exchange
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Swap & Bridge, a cross-chain swap widget
Loyalty Program and Other Web3 Features to End in April
On April 28, Bybit will also terminate its Web3 Points loyalty program, which rewarded users for on-chain activity with perks like fee discounts and airdrop bonuses. Additionally, the platform will shut down:
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Its inscription marketplace
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The NFT Pro decentralized marketplace
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The gateway to Apex Pro, a derivatives DEX
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Its fiat-to-crypto on-ramp
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And its initial DEX offering (IDO) service
Shifting Focus to Core Offerings
While many products are being retired, Bybit is not abandoning Web3 entirely. The platform recently integrated a Bitcoin yield service via Avalon, allowing users to earn fixed-rate returns by participating in institutional lending pools.
This strategic refocus comes amid a broader trend where NFT and DeFi platforms are reevaluating their offerings due to shifting market conditions and user behavior.
READ: Nirvana Finance Hacker Admits Guilt!
Bybit Responds to Security Incident and Market Demands
Bybit says the decision aligns with its commitment to quality and long-term sustainability. In a public statement, the exchange emphasized:
“As part of our dedication to the evolving on-chain ecosystem and our Web3 user base, we’re optimizing our current suite of Web3 services to deliver better value.”
This restructuring follows a significant $1.4 billion hack in February. Despite the incident, the company reassured users of its financial strength:
“Even without recovering the lost funds, Bybit remains solvent, and all client assets are fully backed 1:1.”
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