Bitmart exchange has announced its closure, cessation of it's operation

[SatsPH]

So following, Arthur Hayes-founded crypto exchange BitMEX is closing down. This time, it's BitMart that are going to sunset.

https://x.com/BitMartExchange/status/2081197305491845201

But from what I read on the tweets, almost everyone is complaining of the high fees withdrawing from them. And for those who have funds in this exchange, better moved out your assets.

[FinneysTrueVision]

They suffered a $200 million hack some years ago from which they never fully recovered. Similar to BitMEX, they also struggled to keep up with their competitors. BitMart was good for selling lesser known shitcoins that you’d get from airdrops and bounties, but interest in altcoins has really faded in recent years.

The bear market can be especially difficult for revenue of these companies and projects that were already on a downward trajectory, that’s why we are seeing so many exchanges, wallets, and L2s shutting down recently. You also have miners moving towards AI.

[cryptoaddictchie]

They suffered a $200 million hack some years ago from which they never fully recovered.

I bet this is the prime reason of their closure. I remembered they got compromised before as I am active on alts web3 and seeing them without much revenue these recent years I think theres a huge chance they will shutdown.

Compared to shitcoin market like mexc which is prime choice for degen as trading platform bitmart doesnt have the same level of traction and considering this bear situation theres not much really a choice but to do this.

[tvplus006]

...The bear market can be especially difficult for revenue of these companies and projects that were already on a downward trajectory, that’s why we are seeing so many exchanges, wallets, and L2s shutting down recently. ..

According to the rating of Coinmarketcap, the Bitmart exchange has quite such high trading volumes, which exceed the volumes on such exchanges as OKX, Bybit, Upbit and others. And as know, the higher the trade turnover, unless it was fake, the more profit the exchange receives as a commission. Therefore, the reason for the closure of the Bitmart exchange is not entirely clear.

[LogitechMouse]

They suffered a $200 million hack some years ago from which they never fully recovered. Similar to BitMEX, they also struggled to keep up with their competitors. BitMart was good for selling lesser known shitcoins that you’d get from airdrops and bounties, but interest in altcoins has really faded in recent years.

The bear market can be especially difficult for revenue of these companies and projects that were already on a downward trajectory, that’s why we are seeing so many exchanges, wallets, and L2s shutting down recently. You also have miners moving towards AI.

This could be the primary reason, but there could be some other reasons as to the shut down after a long time.

Regulations for me could also be one reasons for them shutting down. The rising compliance as well could be another reason especially with the MiCa. That alone increased the compliance by a significant amount, and that could be very expensive especially for mid-tier exchanges like Bitmart, and I guess we can include Bitmex in the mix as well. I don't know, but if this is the primary reason, more mid-tier exchanges will shut down in the upcoming months. Of course, let's also add the fact that we are in a bear market and that could have an effect towards these exchanges.

It looks like the crypto space is shifting towards something that we haven't seen before. AI, DeFi hacks becoming a norm, and the good thing is that, there is no huge centralized exchange hack that happened so far this year... or correct me on this one if I'm wrong. The most recent huge exchange hack that comes to my mind is on Bybit, but that was last year I think.

[tabas]

Therefore, the reason for the closure of the Bitmart exchange is not entirely clear.

Aside from suffering from the hack, I'm thinking that it's just the market pressure that they're going through. It's the same cycle(bear market) when some exchanges have closed on 2022 but in FTX it's a different case for its collapse but it created a domino effect. And the reason for the other during that bear was liquidity issue. I won't be surprised if some other known exchange will also announce its closure.

[noorman0]

According to the rating of Coinmarketcap, the Bitmart exchange has quite such high trading volumes, which exceed the volumes on such exchanges as OKX, Bybit, Upbit and others. And as know, the higher the trade turnover, unless it was fake, the more profit the exchange receives as a commission. Therefore, the reason for the closure of the Bitmart exchange is not entirely clear.

This is likely due to the impact of the closure announcement, prompting people to exchange coins with the lowest withdrawal fees before transferring to other exchanges.

Recently, the exchange business has been quite surprising; I think this cycle has seen the most exchange closures in history.

[FinneysTrueVision]

According to the rating of Coinmarketcap, the Bitmart exchange has quite such high trading volumes, which exceed the volumes on such exchanges as OKX, Bybit, Upbit and others. And as know, the higher the trade turnover, unless it was fake, the more profit the exchange receives as a commission. Therefore, the reason for the closure of the Bitmart exchange is not entirely clear.

It is mostly wash trading volume. You can see this from their trading charts where the volumes will look suspiciously uniform.

This is from their SOL/USDT chart, where the volume is consistently between 4.5k and 5k SOL for an entire day. You can compare it to an exchange like Binance and there will be a lot more variance in their chart.

[BABY SHOES]

According to the rating of Coinmarketcap, the Bitmart exchange has quite such high trading volumes, which exceed the volumes on such exchanges as OKX, Bybit, Upbit and others. And as know, the higher the trade turnover, unless it was fake, the more profit the exchange receives as a commission. Therefore, the reason for the closure of the Bitmart exchange is not entirely clear.

They will not describe in detail, this will only be an internal part of the know... Supposedly, they gave a clear clarification of his reasons so that the public knew, again and again we only speculate.

Is it because of high market pressure?
Or was it due to the previous hack mentioned above, $200m was the cause where they did not cover operational costs?
The closure of the Exchange, partly to the surprise of people in conjunction with BitMEX a few days ago, another possible reason could be the tight competition in rivals.

[sergiorus]

Irrelevant exchange with wash traded volumes.

Crypto is a ghost town nowadays so any such news seems big but may I remind you, when Bittrex (once #1 CEX, sort of Binance of 2015-2017) shut down a few years back, not a single soul cared because it had already been irrelevant for a while and the market conditions were better so people had other things to talk about.

[stompix]

They suffered a $200 million hack some years ago from which they never fully recovered.

They didn't pay everyone back either, so the actual losses were way lower.
They didn't go through an audit, had no portal for customer claims, no trustee in charge of the process, it was a mess.

The main problem is that their volume is fake, they are a shady Cayman company investors stayed away from despite 2 roudns of funding, their books are obviously cooked, they have no chance of getting in either the EU and US with current regulations, their main market, which is brand-new shitcoins and memecoins is drained, they have no product to sell and a ton of emplyees doing nothing! It's just a badly run business in a world that doesn't need them.

[PX-Z]

...
Supposedly, they gave a clear clarification of his reasons so that the public knew, again and again we only speculate.

Closure announcements usually don't disclose the exact reasons behind shutting down. In most cases, though, it's related to financial sustainability, whether the business can continue generating enough profit to cover its operating costs.

Expenses such as server hosting, employee salaries, licensing fees, marketing, and other overheads all have to be balanced against monthly revenue. In a highly competitive market, or during this bear market, maintaining profitability can become increasingly difficult, which is often why businesses decide to close, unfortunately.