On April 16, 2025, Bybit, a leading crypto exchange, announced the discontinuation of several Web3 services, effective May 31, 2025, to refocus on its core blockchain and trading offerings. The services set to close include Cloud Wallet (custodial wallet), Keyless Wallet (MPC wallet without seed phrase), DEX Pro (multi-chain decentralized exchange), Swap & Bridge (cross-chain swap tool), and Web3 Points, a rewards program ending April 28. This follows the earlier shutdown of Bybit’s NFT marketplace, signaling a strategic shift to strengthen its primary crypto trading platform. Discussions on X, such as posts from @TONCats_Alpha, highlight this as part of Bybit’s pivot to core products amid a challenging crypto landscape. This article examines Bybit’s decision, user impacts, and the implications for the crypto market in 2025.
Why Bybit Is Scaling Back Web3
Bybit’s decision to terminate these Web3 services reflects a strategic move to streamline operations and enhance its flagship crypto trading services, including spot and futures trading. The exchange aims to remain competitive in a volatile crypto market by focusing on liquidity, user experience, and platform stability. A February 2025 hack, costing Bybit $1.46 billion in Ethereum, exposed vulnerabilities in Web3 infrastructure, likely prompting this realignment. X posts, like one from @ChainGPTAI, note that the hack influenced Bybit’s focus on secure core offerings. Bybit’s Web3 services, including Cloud Wallet, DEX Pro, and Swap & Bridge, demanded significant resources to maintain, especially amid heightened security concerns. By prioritizing its trading ecosystem, Bybit seeks to bolster its position against rivals like Binance and OKX.
Impact on Bybit Users
The shutdown affects users relying on Bybit’s Web3 services. Those using Cloud Wallet or Keyless Wallet must transfer assets to alternative wallets, such as Bybit’s Seed Phrase Wallet, before May 31, 2025. Similarly, DEX Pro and Swap & Bridge users need to migrate their activities to other platforms. The Web3 Points program, rewarding on-chain activity, will cease on April 28, requiring users to redeem points beforehand. Bybit has committed to supporting users through its 24/7 customer service, a strength praised on X for its handling of the 2025 hack. While inconvenient for Web3 enthusiasts, users can still access Bybit’s robust trading tools, Bybit Earn, and other crypto products unaffected by the closures.
Broader Crypto Market Implications
Bybit’s pivot reflects a cautious approach to Web3 in 2025, driven by market volatility and regulatory scrutiny. The crypto community on X, including @FXFinanceFeeds, suggests other exchanges may follow, scaling back Web3 initiatives to mitigate risks. Bybit’s focus on core trading could enhance its market share, especially after regaining 7% following the hack. For crypto investors, this underscores the need for adaptability in a market prone to security and regulatory challenges. Bybit’s emphasis on trading infrastructure may lead to improved tools and lower fees, reinforcing its role as a top exchange.
Looking Ahead
Bybit’s strategic realignment positions it to navigate the evolving crypto landscape in 2025. Users should stay informed via Bybit’s official channels and complete asset transfers before deadlines to avoid disruptions. The exchange’s commitment to core crypto services signals a focus on reliability and security, appealing to traders seeking stability. As Web3 faces scrutiny, Bybit’s move could set a precedent for other platforms, shaping the future of blockchain services.
