The big shot crypto exchange is done. They’re just pulled the rug out from under a selection of its Web3 services.
Wallets, NFT marketplaces, and more, basically trimming the fat after taking a gut punch from a $1.4 billion hack.
Cut
Bybit announced on April 16 that come May 31, they’re killing off the Cloud Wallet, their custodial wallet, the Keyless Wallet, the fancy non-custodial stuff with no seed phrase, their NFT marketplace, the multi-chain DEX Pro, and the Swap & Bridge widget.
That’s a lot of doors slamming shut all at once.
On April 28, they’re also pulling the plug on Web3 Points, their loyalty program that rewarded users for on-chain activity with perks like fee discounts and early access.
And if you thought that was it, nope, they’re also shutting down the inscription marketplace, NFT Pro, the gateway to Apex Pro derivatives DEX, the fiat-to-crypto on-ramp, and their initial DEX offering service.
📢 Important Notice for Bybit Web3 Users
As part of ongoing product optimization, several Web3 services — including Cloud Wallet, Keyless Wallet, DEX Pro, Swap & Bridge, and NFT Marketplace — will be discontinued by May 31, 2025.
Please review the full announcement and take… pic.twitter.com/q8SRnedTmo
— Bybit Web3 (@Bybit_Web3) April 16, 2025
Safu
Why this sudden retreat? Well, Bybit’s trying to refocus on what they call their core products.
They claim it’s about quality over quantity in the progressing Web3 world. Sounds like a classic case of we got hit hard, now we gotta tighten the belt.
And tighten it they must, after that massive hack in February that drained $1.4 billion from their coffers.
Now, don’t get it twisted, Bybit insists they’re still solvent. They say even if they never recover that stolen loot, all client assets are backed 1-to-1.
Translation? Your money’s safe, but they’re cutting back on the flashy stuff to keep the ship afloat.
Cleaning up the mess
Interestingly, Bybit’s also been busy adding some new tricks. They’ve integrated Avalon’s Bitcoin yield product, letting users earn yield on Bitcoin through Avalon’s fixed-rate institutional borrowing layer. So, it’s not all doom and gloom, there’s some hustle going on behind the scenes.
Oh, and a quick side note, Bybit denied rumors that they charge $1.4 million just to list a token on their platform.
Somebody on social media threw that claim out there, but Bybit shut it down fast.
Either way, Bybit’s playing it smart, scaling back on risky Web3 ventures and zeroing in on what they do best after a brutal hack.
It’s like a mob boss cleaning house after a big score goes sideways. You gotta respect the hustle, but man, it’s a tough scene out there in crypto market.
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