3 exchange closed down in July alone, withdraw your money before it's too late.

[shinratensei_]

Since no fraud or loss of user funds has been reported, I don't think there's a problem with these platforms announcing their closure.

Competition or legal complexities might be the reason, but new alternatives will inevitably emerge.

If there are no reported  fraud and users are able to withdraw there money, then  there is indeed no cause for alarm. That is how it ought to be,  what is worrisome is when you wake up and you can no longer see or access the site or when they turnoff the withdrawal option, then that is heart breaking. I think the ones that closed that way in the past are on the chase by the authorities, so that is a welcome development.

UPDATE : Unfortunately, there is a problem, withdrawal aren't going smooth even OpenGradient Co-founder is calling out Bitmart saying they can't get their money out because allegedly they are insolvent even though the Bitmart CEO refuse the allegation that they are running away.

The crazy thing about the picture above is, Bitmart is having a token lock program 1 week before the announcement of their cease of operation. Hopefully none of us locked altcoin on their savings campaign program, I'm sure many of us here are smart enough to understand "not your private key not your coin"

For information, anyone out there who got their withdrawal pending, try $100 or less batches of withdrawals.

[dwyane36]

UPDATE : Unfortunately, there is a problem, withdrawal aren't going smooth even OpenGradient Co-founder is calling out Bitmart saying they can't get their money out because allegedly they are insolvent even though the Bitmart CEO refuse the allegation that they are running away.

The crazy thing about the picture above is, Bitmart is having a token lock program 1 week before the announcement of their cease of operation. Hopefully none of us locked altcoin on their savings campaign program, I'm sure many of us here are smart enough to understand "not your private key not your coin"

For information, anyone out there who got their withdrawal pending, try $100 or less batches of withdrawals.

Yep, I also saw a report in the media stating that the BitMart exchange was nearly insolvent, and this may be one reason they decided to abruptly wind down their operations. Specifically, even before the closure was announced, their assets were valued at just over $100 million, but after the announcement, the figure dropped to only $71 million, of which, as it turns out, more than half consists of illiquid shitcoins.

[SanjkaM]

Cryptocurrency becames more regulated and more contalled.
It is necessary to remember that every time the legislation can changed and the exchanges contral can change too.
Also every time the exchange can be hacked.
That is why it is better not to keep big money in exchange.

[NikaCosta]

There are a lot of money in the exchanges and such big money attract a lot of hackers.
That is why it is ricky to keep money in the exchanges even in regulated exhanges.
Regulated exchanges are not so ricky because state authorities contall them.
But there is impossible to avoid all the risks.

[Cointxz]

I wonder if it marks the bearish bottom of the season? what do you think? Although they are only tier 2 exchange, but 3 in a row is not something that happen too often.

As long as this is not a tier 1 exchange then there’s nothing to worry about since tier 2 or lower tier exchange already doesn’t get much volume these days since ICO or startup token is not a popular trend anymore which this exchanges benefits the most as first listing exchange for small project.

Most of the big startup projects already backed by big exchange and institutional investors to have a secure listing on big exchange.

Main reason why small exchange exist long term in the past is due to shitcoins listing.

[dwyane36]

Main reason why small exchange exist long term in the past is due to shitcoins listing.

It seems to me that this is still actively happening in the market. What I mean is that even small, centralized exchanges can generate a significant amount of profit from trading fees during a hype cycle surrounding a particular alt. For example, if there’s a lot of hype surrounding a certain meme token, trading volumes for that token can reach tens or even hundreds of millions of dollars, even on a relatively small exchange.

[TyanNi]

Now cryptocurrency market falls and it is very difficult time not only for cryptocurrencies but also for crypto exchanges.
More and more people use cryptocurrency and crypto exchanges becomes more regulated.
The legislation changes and it is difficalt time for the work of exchanges.
Also crypto exchages can be hacked.

[henmark]

Main reason why small exchange exist long term in the past is due to shitcoins listing.

It seems to me that this is still actively happening in the market. What I mean is that even small, centralized exchanges can generate a significant amount of profit from trading fees during a hype cycle surrounding a particular alt. For example, if there’s a lot of hype surrounding a certain meme token, trading volumes for that token can reach tens or even hundreds of millions of dollars, even on a relatively small exchange.

That is true; they can, but at the same time, that is the risk they are carrying when there is downtime. Because if you want to be a decent exchange, the amount of money you need to spend on staff is the highest; operational costs are huge. Between staff, hot wallets, security and all that, you are talking about millions of dollars every year spent on running the business itself. Doesn't mean you have to; you can start an exchange all by yourself too, but it would be hacked into the moment it has some money in it, and no matter how great you are, even the best pentester in the world can't handle hundreds of hackers attempting to break in, all by himself.

This is why, if you are cutting corners and in a small place, most likely we will eventually hear the hacking of your exchange one day or another; it always happens in the end. But if you are a company that spends millions a year, with dozens of employees making sure everything runs smoothly, then on bull runs you are in profit and loved, but on bear runs you are not making a profit, and that means you are going to end up with bad results for sure.

[The Cryptovator]

To be honest, crypto exchanges are a profitable business; if any exchanges are closing, it means they are spending lazy time or have any legal complications. In most cases exchanges suffer from liquidity issues; due to low liquidity, exchanges won’t hold stability, hence they might lose and decide to close their services.

I can remember when I had been working with a crypto project and they decided to lose it on BitMart. I had been collaborating with BitMart besides the project team. We thought we may get a good volume from there, and the token price will increase as well. End of the day we realised there was zero volume, and the token dumped hard after listing.

The team has provided liquidity and a market-making bot as well. The liquidity was empty due to the price keep dumping. Then I had been thinking how they are doing business. Not sure if they closed due to liquidity issues, but that’s how they can’t survive.

[drangos]

Main reason why small exchange exist long term in the past is due to shitcoins listing.

It seems to me that this is still actively happening in the market. What I mean is that even small, centralized exchanges can generate a significant amount of profit from trading fees during a hype cycle surrounding a particular alt. For example, if there’s a lot of hype surrounding a certain meme token, trading volumes for that token can reach tens or even hundreds of millions of dollars, even on a relatively small exchange.

That is true; they can, but at the same time, that is the risk they are carrying when there is downtime. Because if you want to be a decent exchange, the amount of money you need to spend on staff is the highest; operational costs are huge. Between staff, hot wallets, security and all that, you are talking about millions of dollars every year spent on running the business itself. Doesn't mean you have to; you can start an exchange all by yourself too, but it would be hacked into the moment it has some money in it, and no matter how great you are, even the best pentester in the world can't handle hundreds of hackers attempting to break in, all by himself.

This is why, if you are cutting corners and in a small place, most likely we will eventually hear the hacking of your exchange one day or another; it always happens in the end. But if you are a company that spends millions a year, with dozens of employees making sure everything runs smoothly, then on bull runs you are in profit and loved, but on bear runs you are not making a profit, and that means you are going to end up with bad results for sure.

I agree the cost of operating and the security risk can become a challenge for smaller exchanges. In bull markets it may appear highly profitable but, in addition to market conditions. It costs money to keep the team. Infrastructure and security in place and to have a high volume of trading. Those costs can become an overwhelming problem when volumes drop. This is why users shouldn't look at the number of coins listed on an exchange or its activity merely during its hype cycle. In the recent closing. It's worth considering considerations like liquidity. Transparency, security measures and withdrawal reliability. Holding a large amount of funds on a centralized exchange means users have counterparty risk. And may want to store what they truly require on the centralized exchange and use self custody for long term investments.

[GeorgeJohn]

• AscendEX (BitMax) Announced cease of operation in July 1, 2026
• BitMex announced closing down in July 23, 2026
• Last but not least, Bitmart which recently announced their cease of operation in 26 July, 2026

I think as this exchanges announced to shutdown in July, they're not going to shutdown due to they're tired with the exchange business,rather they're not having traffics of buyers and sellers in their exchanges..I think that's one of the factors that makes exchanges to close if traffic is no longer there...They're facing challenge of liquidity problem or they want to re-brand their brands with a unique name...my question is that, if their clients who have some coins with their address refused to sell off his coins, does it mean that is going to lose his coins after they have closed or shutdown the exchange..

[uneng]

I wonder if it marks the bearish bottom of the season? what do you think? Although they are only tier 2 exchange, but 3 in a row is not something that happen too often.

We never know if it's really the bottom, or if the market can still fall deeper. I believe the next year of 2027 is going to be bearish as well, so we can finally enter a bullish season in 2028, what means there is still a decent length of bearish market ahead.

Regards the exchanges closure, it can be that crypto market is much more competitive these days than years ago, and companies which don't fit the current demands of customers/investors end having to cease their operations.

When we read news like this, it's always necessary to remind investors to keep their funds stored in wallets only them have access to their holdings.

[Abiky]

To be honest, crypto exchanges are a profitable business; if any exchanges are closing, it means they are spending lazy time or have any legal complications. In most cases exchanges suffer from liquidity issues; due to low liquidity, exchanges won’t hold stability, hence they might lose and decide to close their services.

I can remember when I had been working with a crypto project and they decided to lose it on BitMart. I had been collaborating with BitMart besides the project team. We thought we may get a good volume from there, and the token price will increase as well. End of the day we realised there was zero volume, and the token dumped hard after listing.

The team has provided liquidity and a market-making bot as well. The liquidity was empty due to the price keep dumping. Then I had been thinking how they are doing business. Not sure if they closed due to liquidity issues, but that’s how they can’t survive.

Or more like they can't handle the bear market. Because BTC and alts have been in the "red zone" for a while. Today is the exception because of hype related to the US government buying more BTC and the potential passage of the Clarity Act. Bitcoin prices are now within the $70k - $72k range. Alts have also benefitted from this frenzy. But will it last? I doubt it.

Based on past market performance, crypto should remain bearish during the course of 2027. The bull market will truly begin within 2028 - 2029. That's the period when BTC will experience the next block reward halving. Exchanges will keep closing up shop. But what matters is adoption. So far, it has been increasing at a non-stop rate.

With BitMEX and a few others down, existing exchanges will only get bigger and stronger than ever. This would be good news for Binance and Coinbase (the world's largest crypto exchanges). I'd keep on buying and "hodling" crypto no matter what.

[MiF]

• AscendEX (BitMax) Announced cease of operation in July 1, 2026
• BitMex announced closing down in July 23, 2026
• Last but not least, Bitmart which recently announced their cease of operation in 26 July, 2026

I think as this exchanges announced to shutdown in July, they're not going to shutdown due to they're tired with the exchange business,rather they're not having traffics of buyers and sellers in their exchanges..I think that's one of the factors that makes exchanges to close if traffic is no longer there...They're facing challenge of liquidity problem or they want to re-brand their brands with a unique name...my question is that, if their clients who have some coins with their address refused to sell off his coins, does it mean that is going to lose his coins after they have closed or shutdown the exchange..

I don't believe that the low trading volume is necessarily the primary reason an exchange shuts down. But it can be caused by regulatory pressures, liquidity issues, security issues, operating costs or just a business decision. The bigger problem is what provisions are there for users who end up abandoning their coins on the platform? If an exchange notifies users that it will close, the last time to withdraw may be short and once it is closed, it may be hard to get your money back. Anyone who has been trading with cryptocurrencies for some time now will know that I wouldn't store a significant amount of crypto on an exchange unless I needed it to make trades. Exchanges are good, but they should not be considered a permanent solution. That counterparty risk is decreased with self-custody.

[Emitdama]

It seems to me that this is still actively happening in the market. What I mean is that even small, centralized exchanges can generate a significant amount of profit from trading fees during a hype cycle surrounding a particular alt. For example, if there’s a lot of hype surrounding a certain meme token, trading volumes for that token can reach tens or even hundreds of millions of dollars, even on a relatively small exchange.

That is true; they can, but at the same time, that is the risk they are carrying when there is downtime. Because if you want to be a decent exchange, the amount of money you need to spend on staff is the highest; operational costs are huge. Between staff, hot wallets, security and all that, you are talking about millions of dollars every year spent on running the business itself. Doesn't mean you have to; you can start an exchange all by yourself too, but it would be hacked into the moment it has some money in it, and no matter how great you are, even the best pentester in the world can't handle hundreds of hackers attempting to break in, all by himself.

This is why, if you are cutting corners and in a small place, most likely we will eventually hear the hacking of your exchange one day or another; it always happens in the end. But if you are a company that spends millions a year, with dozens of employees making sure everything runs smoothly, then on bull runs you are in profit and loved, but on bear runs you are not making a profit, and that means you are going to end up with bad results for sure.

Yes I agree; the amount of money that needs to be spent to keep a place running is a lot, at least for decent places. But marketing is another big dilemma as well. If you spend nothing on marketing, you won't get traders, and if you do not get traders, then you do not get profits. But, if you do spend money on marketing, then you are going to run out of money, and if marketing doesn't work out and you do not get traders even with marketing, then you are going to close shop.

This is probably what happened here: you can't run a company on zero cost. They had costs like staff, operations, rent, taxes, marketing, etc, and the amount of money they made from the trading fees wasn't enough to cover that at all. This means that many exchanges out there could face the same situation. As long as a casino ends up doing this and still allows people to withdraw, I feel fine about it; that means they are a decent exchange. But if they go bankrupt and do not give anyone their money back, then they should be jailed.