Bybit, a prominent crypto exchange, revealed on April 16, 2025, that it will phase out multiple Web3 services by May 31, 2025, to concentrate on its core blockchain and trading offerings. The services to be discontinued include:
- Cloud Wallet (a custodial wallet).
- Keyless Wallet (an MPC wallet with no seed phrase).
- DEX Pro (a decentralized exchange supporting multiple chains).
- Swap & Bridge (a tool for cross-chain swaps and bridges).
- Web3 Points, the rewards program, which ends on April 28.
This follows the closure of Bybit’s NFT marketplace, reflecting a strategic realignment. Posts on X, including those from @coinspeaker, highlighted this move as a response to market dynamics. Therefore, this article examines Bybit’s motives. It also explores the potential impact on users. Additionally, it looks at how the 2025 crypto landscape shapes these decisions.
Why Bybit Is Retreating from Web3
Bybit’s decision to eliminate these Web3 services is driven by a need to optimize resources and enhance its flagship trading products, including spot and futures markets. Renowned for its user-friendly interface, Bybit aims to strengthen its crypto trading ecosystem to remain competitive in a fast-changing industry. A $1.46 billion Ethereum hack in February 2025 exposed weaknesses in Web3 infrastructure, likely influencing this pivot, as highlighted by @coinspeaker on X. By focusing on core services, Bybit seeks to improve security, liquidity, and user satisfaction for its 60 million-plus users.
The discontinued services—Cloud Wallet, Keyless Wallet, DEX Pro, Swap & Bridge, and the NFT marketplace were key to Bybit’s Web3 portfolio, enabling DeFi and NFT interactions. However, their maintenance demanded significant resources, particularly after the hack underscored security risks. By reallocating efforts to trading platforms, Bybit aligns with a broader industry trend, as seen with X2Y2’s closure, where exchanges scale back Web3 amid regulatory and market challenges.
What This Means for Users
The termination impacts users of Bybit’s Web3 services, with Cloud Wallet, Keyless Wallet, DEX Pro, and Swap & Bridge ending by May 31, 2025, and Web3 Points stopping April 28. Users must transfer assets to Bybit’s Seed Phrase Wallet or external platforms like Unisat before the deadline. NFT marketplace users need to relocate assets to marketplaces like OpenSea, as access will cease permanently. Bybit’s 24/7 customer support, lauded on X post-hack, will assist during this transition, ensuring a smooth process.
Web3 users may face some inconvenience. However, Bybit ensures secure access to spot trading, futures, and Bybit Earn. This approach appeals to users who value core crypto services more than decentralized tools.
Bybit and the Crypto Landscape in 2025
Bybit’s strategic shift reflects a prudent stance on Web3 in a volatile crypto market. By enhancing its trading infrastructure, Bybit aims to rival exchanges like Binance and OKX, potentially introducing advanced tools and competitive fees. X posts, such as @UKVenum’s, suggest this could prompt other platforms to reconsider Web3 investments amid risks like hacks and regulations.
For crypto investors, Bybit’s realignment emphasizes the need for flexibility in a dynamic market. Monitoring Bybit’s updates through official channels or X will be crucial for navigating 2025’s evolving crypto landscape, as Bybit reinforces its position as a leading exchange.