Bybit is shutting down more of its Web3 services after axing its non-fungible token (NFT) marketplace earlier in April.
According to an April 16 announcement, the exchange is shutting down its Cloud Wallet (a hosted custodial wallet), Keyless Wallet (non‑custodial multiparty computation wallet with no seed phrase), NFT marketplace, multi‑chain decentralized exchange (DEX) DEX Pro and the Swap & Bridge cross‑chain swap widget on May 31.
On April 28, Bybit will also discontinue Web3 Points, its internal loyalty program that rewarded onchain activity with redeemable points for fee discounts, airdrop boosts and early-bird perks.
On the same day, the exchange will shut down its inscription marketplace, the decentralized NFT marketplace NFT Pro, the gateway to the Apex Pro derivatives DEX, its fiat-to-crypto on-ramp, and its initial DEX offering service.
A strategic pivot
Bybit announced its intention to shut down its NFT marketplace earlier this month. The decision follows a similar decision by major NFT marketplace X2Y2. Still, the firm is not just cutting products. Recent reports indicate that Bybit has integrated the Bitcoin (BTC) yield product of lending protocol Avalon to offer Bitcoin yield to its users. Avalon said it will allow the platform’s users to earn yield from Bitcoin by arbitrating on its fixed-rate institutional borrowing layer. Bybit recently denied claims that it charges $1.4 million to list a token on its platform, following allegations made by a social media user.
Bybit refocusing its efforts
Bybit said it is shutting down the services in order to focus on the quality of its core products. The announcement reads: “In line with our commitment to the evolving onchain ecosystem and delivering high-quality services to our Web3 users, we will be optimizing our current Web3 product and service offerings.“ These apparent cost-cutting efforts by the company follow Bybit’s loss of about $1.4 billion in a major hack in February. “Bybit is Solvent even if this hack loss is not recovered, all of the client’s assets are 1 to 1 backed — we can cover the loss.“ Bybit had not responded to Cointelegraph’s request for comment by publication.