Bybit Shuts Web3 Services, Focuses on Core Products After $1.4B Hack

Coin WorldThursday, Apr 17, 2025 9:39 am ET

1min read

Bybit, a prominent cryptocurrency exchange, has announced the shutdown of several of its Web3 services, following the closure of its non-fungible token (NFT) marketplace earlier in April. The exchange will discontinue its Cloud Wallet, Keyless Wallet, multi-chain decentralized exchange (DEX)

DEX

Pro, and the Swap & Bridge cross-chain swap widget by May 31. Additionally, on April 28, 2025, Bybit will also discontinue Web3 Points, its internal loyalty program, as well as its inscription marketplace, the decentralized NFT marketplace NFT Pro, the gateway to the Apex Pro derivatives DEX, its fiat-to-crypto on-ramp, and its initial DEX offering service.

This strategic pivot comes after Bybit's decision to shut down its NFT marketplace earlier this month, a move that mirrors similar actions taken by major NFT marketplace X2Y2. Despite these closures, Bybit is not merely reducing its product offerings. The exchange has integrated the Bitcoin (BTC) yield product of lending protocol Avalon, allowing its users to earn yield from Bitcoin through arbitrating on its fixed-rate institutional borrowing layer.

Bybit has stated that the shutdown of these services is part of its effort to focus on the quality of its core products. The exchange aims to optimize its current Web3 product and service offerings in line with its commitment to the evolving onchain ecosystem and delivering high-quality services to its Web3 users. These cost-cutting efforts follow a significant hack in February, which resulted in a loss of approximately $1.4 billion. Bybit has assured users that it remains solvent and that all client assets are fully backed, even if the hack loss is not recovered.

Rumors suggest that Bybit may be exploring other means to recoup the loss. However, the exchange has denied allegations that it charges $1.4 million to list a token on its platform, following claims made by a social media user. Bybit has not responded to requests for further comment on the matter.

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