According to an announcement published on April 16, 2025, crypto exchange Bybit stated it will discontinue a range of Web3 services by May 31, 2025. The services scheduled to shut down include:
- Cloud Wallet (custodial wallet).
- Keyless Wallet (MPC wallet without a seed phrase).
- DEX Pro (multi-chain decentralized exchange).
- Swap & Bridge (cross-chain swap and bridging tool).
- Web3 Points: The rewards program, which will end on April 28.
This decision follows the earlier termination of its NFT marketplace and reflects Bybit’s strategic pivot to strengthen its core blockchain and trading offerings. Announced on April 16, 2025, this development has sparked discussions across the crypto community, particularly on platforms like X, about the future of Web3 services in volatile markets. This article explores Bybit’s rationale, the implications for users, and what this means for the crypto landscape in 2025.
Why Is Bybit Scaling Back Web3 Services?
Bybit’s decision to discontinue these Web3 services stems from a need to streamline operations and focus on its primary strengths: spot trading, futures, and other crypto trading products. The exchange, known for its user-friendly interface and robust trading tools, aims to enhance its blockchain-based core services to remain competitive in a rapidly evolving crypto market. Posts on X highlight that this move is part of a broader trend, with platforms reassessing Web3 initiatives amid regulatory uncertainties and market challenges. For instance, a February 2025 hack that cost Bybit $1.46 billion in Ethereum exposed vulnerabilities in Web3 infrastructure, likely influencing this strategic shift.
The terminated services—Cloud Wallet, DEX Pro, Swap & Bridge widget, Web3 IDO, and the NFT marketplace—were integral to Bybit’s Web3 portfolio, offering users decentralized finance (DeFi) and NFT functionalities. However, maintaining these services required significant resources, especially after the hack highlighted security risks in Web3 ecosystems. By redirecting efforts to core trading platforms, Bybit aims to bolster liquidity, improve user experience, and ensure stability for its global user base.
Implications for Bybit Users
For Bybit users, the shutdown means the cessation of Web3-related activities by May 31, 2025. Those utilizing Cloud Wallet or DEX Pro are advised to transfer assets to other wallets or platforms before the deadline. Similarly, NFT holders must migrate their assets, as the NFT marketplace will no longer be accessible. Bybit has assured users that its customer support, available 24/7, will assist during this transition, maintaining its reputation for professional crisis management, as noted in X discussions following the 2025 hack.
This shift may inconvenience Web3 enthusiasts but aligns with Bybit’s commitment to prioritizing secure, high-quality trading services. Users can still access Bybit’s spot and futures trading, Bybit Earn, and other crypto products, which remain unaffected by the closures.
What’s Next for Bybit and the Crypto Industry?
Bybit’s move signals a cautious approach to Web3 amid a turbulent crypto landscape in 2025. The exchange’s focus on core offerings could strengthen its position against competitors like Binance and OKX, especially as regulatory scrutiny intensifies. The crypto community on X speculates that other platforms may follow suit, scaling back Web3 services to mitigate risks.
For crypto investors, Bybit’s strategic realignment underscores the importance of adaptability in a market prone to hacks and regulatory shifts. As Bybit enhances its trading infrastructure, users can expect improved tools and potentially lower fees, reinforcing its role as a top-tier exchange. Stay updated via Bybit’s official channels for further developments in 2025.
