On April 16, 2025, Bybit, a leading crypto exchange, announced the discontinuation of several Web3 services by May 31, 2025, as part of a strategic shift to prioritize its core trading offerings. The discontinued services are:
- Cloud Wallet (a custodial wallet).
- Keyless Wallet (an MPC wallet with no seed phrase).
- DEX Pro (a decentralized exchange supporting multiple chains).
- Swap & Bridge (a tool for cross-chain swaps and bridges).
- Web3 Points, the rewards program, which ends on April 28.
This follows the earlier shutdown of Bybit’s NFT marketplace, signaling a broader pivot to enhance blockchain-based trading. Posts on X, including those from @coinspeaker, highlighted this move as a response to market dynamics. Therefore, this article examines Bybit’s motives. It also explores the potential impact on users. Additionally, it looks at how the 2025 crypto landscape shapes these decisions.
Bybit’s Rationale for Scaling Back
Bybit’s decision to axe these Web3 services reflects a strategic need to streamline operations and focus on its strengths in spot and futures trading. Known for its intuitive platform, Bybit aims to bolster its crypto trading ecosystem to stay competitive amid a volatile market. A February 2025 hack, costing Bybit $1.46 billion in Ethereum, exposed vulnerabilities in Web3 infrastructure, likely accelerating this shift, as noted in X posts by @AustinZaback. By prioritizing core services, Bybit seeks to enhance liquidity, security, and user experience for its global audience of over 60 million users.
The terminated services, including Cloud Wallet, DEX Pro, Swap & Bridge, and the NFT marketplace, were central to Bybit’s Web3 offerings, supporting DeFi and NFT functionalities. However, maintaining these resource-intensive services became challenging post-hack, with security concerns outweighing their benefits. By redirecting resources, Bybit aims to fortify its trading platform, aligning with industry trends where exchanges reassess Web3 commitments amid regulatory and market pressures, as seen in similar moves by platforms like X2Y2.
Impact on Bybit Users
The shutdown affects users relying on Bybit’s Web3 tools, with Cloud Wallet, Keyless Wallet, DEX Pro, and Swap & Bridge ceasing by May 31, 2025, and Web3 Points ending April 28. Users must transfer assets to alternatives like Bybit’s Seed Phrase Wallet or external platforms before the deadline. NFT marketplace users must act quickly to move assets to OpenSea or Magic Eden. They will lose access permanently after shutdown. Bybit has promised 24/7 customer support to help with the transition. Many on X praised this move, citing Bybit’s reliability after the 2025 hack.
While Web3 enthusiasts may find this disruptive, Bybit’s focus on secure trading services ensures continued access to spot trading, futures, and Bybit Earn. This realignment prioritizes stability, catering to users valuing core crypto functionalities over decentralized offerings.
Future of Bybit and Crypto in 2025
Bybit’s pivot underscores a cautious approach to Web3 in a turbulent crypto market. Bybit plans to improve its trading infrastructure to rival Binance and OKX. It may offer better tools and lower fees. Posts on X, including @TONCats_Alpha’s, suggest others could follow. These exchanges might reduce Web3 features to avoid hacks and regulatory risks.
For crypto investors, Bybit’s move highlights the need for adaptability in a dynamic market. Staying informed via Bybit’s official channels or X will be key to navigating these changes in 2025, as the exchange solidifies its role as a top-tier trading platform.
