Foundation and features
Hotbit launched in 2018, with registrations in Hong Kong, Estonia, the U.S., Australia, and Canada. It supported spot trading, financial derivatives, crypto investments, and DApps across 210 countries. Hotbit gained traction in emerging markets like Russia and Turkey, even ranking among the top three exchanges in Russia in 2019.
Innovation and product offerings
Hotbit was an early innovator in yield products. In 2019, it became the first exchange to offer daily interest on deposits without locking tokens, across more than 22 assets. It also launched fixed-term deposit options and futures like ATOM launch futures. Technically, it built a high-frequency trading engine using distributed servers, memory-based architecture, and multi-tiered wallets, with support for web, mobile, and desktop clients.
User base and reach
At its peak, Hotbit served over 7 million users worldwide, with more than 1,900 tokens and 3,200 pairs listed. Daily volume once exceeded $24.5 million. It offered staking, DeFi farming, referral rewards, and frequent community airdrops and competitions, creating a vibrant user ecosystem.
Closure and behind the shutdown
In May 2023, authorities froze Hotbit's operational funds due to a criminal investigation tied to a former manager. The exchange suspended deposits, withdrawals, and trading on May 22, urging users to withdraw by June 21. Trading activity collapsed to zero, and the platform never reopened.
Strengths & weaknesses
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Final word
Hotbit was once an ambitious and innovative exchange, pioneering flexible yield products and amassing millions of users. Yet its downfall was sudden. Regulatory action in 2023 forced a complete shutdown, showing how quickly growth can collapse without robust compliance. Today, Hotbit is defunct, remembered less as a market leader and more as a cautionary tale in crypto exchange history.