Bybit, a major cryptocurrency exchange, announced it will discontinue several Web3 services by May 31, 2025, as part of a strategic refocusing on its core products. This move follows the earlier closure of its non-fungible token (NFT) marketplace in April, according to an April 16 announcement from the company.
The services being eliminated include the exchange’s Cloud Wallet (a custodial solution), Keyless Wallet (a seed-phrase-free non-custodial option), multi-chain decentralized exchange DEX Pro, and the cross-chain Swap & Bridge widget. These closures represent a significant reduction in Bybit’s Web3 offerings.
Additional services will cease even sooner, with April 28 marking the end of Web3 Points (the platform’s loyalty program), its inscription marketplace, NFT Pro decentralized marketplace, Apex Pro derivatives gateway, fiat-to-crypto on-ramp, and initial DEX offering service. The company explained the cuts are part of an optimization strategy for its Web3 products.
Strategic Refocusing After Security Incident
The service reductions follow a substantial security breach in February where Bybit lost approximately $1.4 billion in a major hack. Despite this setback, the company assured users at the time: “Bybit is Solvent even if this hack loss is not recovered, all of the client’s assets are 1 to 1 backed — we can cover the loss.”
The exchange isn’t only cutting services but also developing new offerings. Recent reports indicate Bybit has integrated lending protocol Avalon’s Bitcoin yield product, allowing users to earn returns through arbitrage on the platform’s fixed-rate institutional borrowing layer.
Industry Trends and Denials
Bybit’s NFT marketplace closure aligns with similar moves in the industry, following major NFT marketplace X2Y2’s comparable decision. The exchange has positioned these changes as a strategic pivot to enhance its core services rather than a direct response to the hack.
The company has also addressed rumors circulating in the cryptocurrency community, specifically denying allegations that it charges $1.4 million to list tokens on its platform. When contacted by Cointelegraph, Bybit had not provided a response by the time of publication regarding these service changes.
In its official announcement, Bybit stated: “In line with our commitment to the evolving onchain ecosystem and delivering high-quality services to our Web3 users, we will be optimizing our current Web3 product and service offerings.”
Source: Bitnewsbot.com / Digpu NewsTex