Key Takeaways
- Hotbit and Bittrex US have also shut down operations recently
- MoonXBT cited sited sluggish market conditions as a reason for ceasing operations
The bear market and prolonged crypto winter haven’t been kind on the digital asset space. The latest exchange to fall victim to harsh market conditions is MoonXBT. On May 15, crypto trading platform MoonXBT halted its operations, citing sluggish market conditions.
“Since the market has been relatively sluggish since May 2022, MoonXBT has also faced significant challenges and difficulties. We had to make a difficult decision to stop all MoonXBT exchange services and adjust the strategic direction of MoonXBT”, the announcement reads.
The exchange stopped placing orders & copy trading functions for Liquid Contracts on May 5 and started delisting all trading pairs on May 8, 2023. As per the official announcement, the exchange is working on processing withdrawals as soon as possible.
Relatively a new exchange, launched only in 2021, MoonXBT advertised itself as the “first social crypto trading platform.” Within a short span, the exchange was able to earn a name for itself in the crypto space. Reportedly, MoonXBT became Vietnam’s third-largest crypto trading platform within less than a year of starting operations.
However, MoonXBT is not the first crypto exchange to announce the cessations of its operations this month. Earlier this month, crypto trading platform Hotbit stated that it would be halting its operations. Hotbit, in its official announcement, said that centralized exchanges were become “increasingly cumbersome,” adding that users should withdraw funds by June 21.
The firm also pointed to other problems, including high risks on certain assets and repeated cyber attacks, which made its model of offering a wide range of investments “unsustainable. Apart from Hotbit and MoonXBT, Bittrrex also announced the closure of its US operations, citing intense regulatory scrutiny and further filed for Chapter 11 bankruptcy protection.
The sudden closure of crypto exchanges, including MoonXBT, will likely erode investor confidence and raise more concerns about security, regulation, and overall stability within the cryptocurrency market.
