Crypto exchange Bybit to discontinue multiple Web3 services, including its NFT marketplace and wallets, by end of May
Bybit has announced a significant shift in its business strategy, revealing plans to shut down most of its Web3 services, including various wallets and NFT platforms. This move comes shortly after the crypto exchange suffered a major security breach, resulting in a loss of approximately $1.4 billion in February.
Multiple Services to Be Discontinued
In a statement released on 16 April, Bybit confirmed that it will be closing down several key Web3 offerings by 31 May. These include:
- Cloud Wallet (a custodial wallet)
- Keyless Wallet (a non-custodial wallet using multiparty computation)
- NFT marketplace
- Multi-chain decentralised exchange DEX Pro
- Swap & Bridge, a cross-chain swap widget
Additionally, Bybit will discontinue its Web3 Points loyalty programme on 28 April. The programme rewarded users for onchain activity with points redeemable for fee discounts, airdrop boosts, and early-access benefits.
Wider Service Shutdown
Also ending on 28 April are the following services:
- Inscription marketplace
- Decentralised NFT marketplace, NFT Pro
- Gateway access to Apex Pro derivatives DEX
- Fiat-to-crypto on-ramp
- Initial DEX Offering (IDO) service
These closures follow the earlier announcement that the company would be axing its NFT marketplace. The move mirrors a broader industry trend, with other platforms like X2Y2 also withdrawing from the NFT space.
Strategic Refocus on Core Products
According to Bybit, the decision to cut these services is part of a broader effort to refocus on the company’s core products and improve service quality. The company stated:
“In line with our commitment to the evolving onchain ecosystem and delivering high-quality services to our Web3 users, we will be optimising our current Web3 product and service offerings.”
The announcement suggests a strategic pivot towards stability and operational efficiency, particularly in the aftermath of the high-profile hack. However, the company has reassured users that it remains financially secure.
Continued Development in Yield Offerings
Despite the widespread service cuts, Bybit is not halting innovation entirely. The firm recently partnered with lending protocol Avalon to offer Bitcoin yield products to its users. Through this collaboration, Bybit users can earn yield by arbitrating on Avalon’s fixed-rate institutional borrowing layer.
In a separate matter, Bybit has also refuted recent social media claims that it charges $1.4 million to list tokens on its platform, labelling the allegations as false.
Financial Stability Amid Setbacks
In the wake of the February hack, Bybit has sought to reassure its customers that their assets remain secure. The company declared:
“Bybit is solvent even if this hack loss is not recovered — all of the client’s assets are 1:1 backed. We can cover the loss.”
As Bybit reshapes its Web3 strategy, the focus now shifts to maintaining user trust and strengthening its core offerings in an increasingly competitive crypto landscape.
