What's wrong with BITMART?

[bithunt_io]

Just saw the news:

BitMart shuts down trading as BMX crashes more than 60% 

What's wrong with them? I wonder if it affects btc price

[OmegaStarScream]

Same thing would've happened if it was binance or kucoin. The token is linked to the exchange itself, it would obviously crash. As for the cause, then looks like market conditions is the reason for the shutdown: https://x.com/i/status/2081197305491845201

Strangely, YoBit being the worst exchange of all times seems to be up and running still. 

[bithunt_io]

Same thing would've happened if it was binance or kucoin. The token is linked to the exchange itself, it would obviously crash. As for the cause, then looks like market conditions is the reason for the shutdown: https://x.com/i/status/2081197305491845201

Strangely, YoBit being the worst exchange of all times seems to be up and running still. 

BitMex down. BitMart down. Who is next? 

[DPHOR]

Same thing would've happened if it was binance or kucoin. The token is linked to the exchange itself, it would obviously crash. As for the cause, then looks like market conditions is the reason for the shutdown: https://x.com/i/status/2081197305491845201

Strangely, YoBit being the worst exchange of all times seems to be up and running still.  

If I could recall correctly I have only used this exchange once back then.
After my experience with few of these exchange I just decided not to be jumping around exchanges.
This crash may likely have effect on the market because, if they already have a higher trading volume on the exchange and such thing that could cause a lot of panic across traders.

BitMex down. BitMart down. Who is next? 

You can't really predict the next to be down but, what you must know is that is not always advisable to keep funds on exchange, it is better to make withdrawal and move out your funds from exchange.
Remember, "not your key not your coin".

[Charles-Tim]

Already existing discussion

https://bitcointalk.org/index.php?topic=5589435.msg66979861#msg66979861

bithunt_io, it is better you lock this thread.

[notocactus]

Same thing would've happened if it was binance or kucoin. The token is linked to the exchange itself, it would obviously crash. As for the cause, then looks like market conditions is the reason for the shutdown: https://x.com/i/status/2081197305491845201

Strangely, YoBit being the worst exchange of all times seems to be up and running still. 

BitMEX, Bitmart are not scare centralized exchanges that close their services or had bankruptcy or scam exits.
Many died exchanges are collected in Cryptocurrency exchange graveyard (Rest in peace).

In two latest market cycles, there was belief like exchange tokens are safest and most favorite cryptocurrencies to have in portfolios. What happened with BitMEX, Bitmart and their exchange tokens recent days are very strong warnings to cryptocurrency enthusiasts.

There is Reminder: do not keep your money in online accounts since collapses of Terra and FTX exchange 4 years ago, but now it seems right time to add one more reminder: Centralized Exchanges' tokens are unsafe.

[slaman29]

Same week Movement also shut down because their token failed, I read they're also being brought to court.

Strangely, YoBit being the worst exchange of all times seems to be up and running still. 

OMG. This was the exchange I was trying to remember several months back in a separate discussion, someone reminded me of the name. I'll never forget their bikini Twitter profile lol

Of all the exchanges I've ever used as well, as shit and scammy as Yobit was I actually never got scammed or needed support from them. My luck I guess!

[Jatiluhung]

Just saw the news:

BitMart shuts down trading as BMX crashes more than 60% 

What's wrong with them? I wonder if it affects btc price

Remember that Bitmart was hacked back in 2021. And we know that reputation is hard to repair in the crypto industry. especially when there are many other, more trusted exchanges. So it’s only natural that they’ve seen a decline in users and trading volume on their CEX.

Competition among CEXs is indeed fiercer. And for those with a history that could undermine user trust, well, they must be prepared to be weeded out. BitMart has actually been slowly preparing for closure over the past few months, and now they’ve officially announced a phased shutdown, even though the official closure isn’t until early 2027.

As for the impact on BTC, I don’t think it will be significant, since users from that platform will likely move to other platforms.

[suhadi88]

BitMex down. BitMart down. Who is next? 

The next step is to update their notifications. However, in such a situation, Bitmart users should continue to monitor and, if possible, secure their assets to a safer location as soon as possible if the situation shows any signs of deterioration. Don't dwell on it and hope for a replacement guarantee when the time comes to collapse.

[crwth]

Upon reading more about this, it's more about BitMart's business, and since there are issues with it, the BMX collapse, the loss of confidence in BitMart - not Bitcoin.

We need to know that a company can fail while Bitcoin will continue to operate because of its nature, decentralized. Maybe we can focus on the health of the exchange, like reserves, rather than the exchange tokens themselves.

Liquidity is the most important IMO in exchanges.

[Alphakilo]

It could be BitMart ain't able to satisfy the regulatory requirements because I know regulations these days are becoming strict mostly as it surrounds crypto currency and tokens.

The best advice I can give anyone who uses them right now would be to request your withdrawals directly to a self custody wallet before August 26 according to what I learnt. We have had few similar cases like this and no, their concern doesn't quite affect the price of Bitcoin in the market because this isn't a major volatile situation.

[nelson4lov]

What's even funnier about this Bitmart shutdown was that their global CEO was still out and representing the company not knowing that the board itself had chosen to shutdown the company. Imagine being the global CEO who have zero control or insider look into internal proceedings. I'm definitely sure Bitmart was a profitable business especially with all those listing's over the years but maybe it wasn't enough for them?

[rat03gopoh]

BMX's crashes began with the announcement of their planned shutdown, not the other way around. The 60% drop was the combined effect of pressure between the spot and derivatives markets on their own platform.

They wouldn't have had any effect on Bitcoin, not even a 0.01% price shift.

Strangely, YoBit being the worst exchange of all times seems to be up and running still. 

Even stranger, 2hrs before the shutdown tweet, Bitmart tweeted about a new coin listing that would be taking place today. https://x.com/i/status/2081170859855650928

[Bitcoin_Arena]

Even stranger, 2hrs before the shutdown tweet, Bitmart tweeted about a new coin listing that would be taking place today. https://x.com/i/status/2081170859855650928

Sometimes these exchanges are just nuts 

It's no surprise that the token linked to the exchange also plummets in price upon the announcement of the shutdown news. When the exchange ceases to exist, the token becomes useless, so there is no point of holding it. I wonder if the token was being traded on other exchanges, especially perpetuals. It would have been good to open a short position.

[Webutxo]

Remember that Bitmart was hacked back in 2021. And we know that reputation is hard to repair in the crypto industry. especially when there are many other, more trusted exchanges. So it’s only natural that they’ve seen a decline in users and trading volume on their CEX.

Competition among CEXs is indeed fiercer. And for those with a history that could undermine user trust, well, they must be prepared to be weeded out. BitMart has actually been slowly preparing for closure over the past few months, and now they’ve officially announced a phased shutdown, even though the official closure isn’t until early 2027.

As for the impact on BTC, I don’t think it will be significant, since users from that platform will likely move to other platforms.

I saw some post from users that they are having difficulties to withdraw their funds from Bitmart exchange and it's because the exchange stopped and they are asking for additional kyc information before they can be able to withdraw their funds. What I don't understand is how people were convinced that after the exchange hacked that happened in 2021 that amount to $200m, they knew the exchange was this short but they ketp using it until now.

I think some people will never learn, they will do whatever pleases them regardless and it's bad. People need to know that centralized exchanges are not place to keep funds except if you are a trader, it doesn't make any sense to be running after the money you suffer to raise only for one company to deny you access to your money. Sad but I won't be surprised if there is an exchange somewhere now that is about to stop operation very soon.

[suzanne5223]

Remember that Bitmart was hacked back in 2021. And we know that reputation is hard to repair in the crypto industry. especially when there are many other, more trusted exchanges. So it’s only natural that they’ve seen a decline in users and trading volume on their CEX.

Competition among CEXs is indeed fiercer. And for those with a history that could undermine user trust, well, they must be prepared to be weeded out. BitMart has actually been slowly preparing for closure over the past few months, and now they’ve officially announced a phased shutdown, even though the official closure isn’t until early 2027.

As for the impact on BTC, I don’t think it will be significant, since users from that platform will likely move to other platforms.

I saw some post from users that they are having difficulties to withdraw their funds from Bitmart exchange and it's because the exchange stopped and they are asking for additional kyc information before they can be able to withdraw their funds. What I don't understand is how people were convinced that after the exchange hacked that happened in 2021 that amount to $200m, they knew the exchange was this short but they ketp using it until now.

I think some people will never learn, they will do whatever pleases them regardless and it's bad. People need to know that centralized exchanges are not place to keep funds except if you are a trader, it doesn't make any sense to be running after the money you suffer to raise only for one company to deny you access to your money. Sad but I won't be surprised if there is an exchange somewhere now that is about to stop operation very soon.

What happened to Bitmart is a sad story, but i believe it will open people's understanding not to invest in centralized exchange coins and also not to use CEX as storage.
In the meantime, i believe more exchanges will shut down this year; it's either due to the MiCA license (AscendEX withdrawals under manual review with no guarantee of full/timely payment) or financial/operational review, or strategic shift (which is what happened to both BitMart, and BitMEX).