Bybit is shutting down a major portion of its Web3 portfolio, including its NFT marketplace, wallets, and several decentralized services.
Bybit is shutting down a major portion of its Web3 portfolio, including its NFT marketplace, wallets, and several decentralized services. The company announced that it will end support for the Cloud Wallet and Keyless Wallet by May 31, 2025, along with services like DEX Pro, Swap & Bridge, NFT Pro, the fiat-to-crypto on-ramp, the inscription marketplace, and its access point to the Apex Pro derivatives DEX. ApeX was already discontinued on April 8.
The Cloud Wallet is a hosted custodial wallet, while the Keyless Wallet is a non-custodial solution using multiparty computation. Bybit urged users to transfer all tokens, NFTs, and other assets from these wallets into unaffected options such as the Seed Phrase Wallet or Bybit Funding Account. Users of the Keyless Wallet will be able to export their private keys and continue using them independently. Those who do not move their assets before the shutdown may face delays or additional identity verification steps.
On April 28, Bybit will also end its Web3 Points program, which previously offered users rewards like fee discounts and airdrop boosts in exchange for on-chain activity. The company is advising users to withdraw assets from all services slated for discontinuation as soon as possible.
This large-scale restructuring comes after a $1.4 billion hack earlier this year. The company stated, “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.” In response to separate online allegations, Bybit has denied charging $1.4 million to list a token on its platform.
According to its announcement, the decision to sunset these services is part of a strategic shift. The company said it plans to concentrate on core offerings and “optimize our current Web3 product and service offerings.” Although many services are being retired, Bybit confirmed that it will maintain support for the Seed Phrase Wallet, staking features, DApps, and Airdrop Arcade.
While scaling down its Web3 operations, Bybit has also introduced new features. It recently integrated Avalon’s Bitcoin yield product, which allows users to earn returns by arbitraging on a fixed-rate institutional borrowing platform. Additionally, it partnered with Zodia Custody to provide more secure storage options for digital assets.
The shutdown mirrors a similar move by NFT marketplace X2Y2, which cited declining volumes and network issues as the reason for ending its services by April 30. Bybit has not confirmed whether any new products will replace the outgoing ones. The company emphasized that the changes are intended to help users manage assets more independently and securely.
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