Why Hotbit halts their services? Some Risky Exchanges!

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Friends, there are about 600+ exchanges in the world. These exchanges work for the crypto industry and provide services to crypto users. Among these exchanges, hotbit.io was a popular exchange. A crypto trading platform Hotbit was launched in 2018. Recently they stop all their services. If you visit their official website now, then there is clearly indicated that Hotbit has Stops Running. This incident took place on May 22, 2023.

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Why Hotbit halts their services?

Hotbit was a well-known crypto exchange. You will be surprised to hear that, the revenue of the Hotbit exchange was close to other top exchanges. After doing so great, what is the reason for the closure of this exchange site? There is some dark reality behind this incident.

Hotbit is an exchange, where many types of coins were available, which are not listed on other exchanges. Many Mim coins were listed on this exchange. They take huge amounts of money to list these coins. The investigation revealed that one of their staff cheated on them. Due to this reason, the exchange site stopped trading. They mentioned this kind of reason for their closure. The shocking news is that they charge huge amounts from many people to list the coins. And there were several scams with users.

They charged additional trading fees from users. They acted as they wished and without any logic. It can be said that Hotbit is that kind of exchange, that has come to just looting the money from the users. If they wanted to provide services to the users, they would not have done such absurd things. Some investors are lucky that Hotbit announced and give them some time to withdraw funds. But if the exchange were to disappear like FTX, it would be worse.

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Some risky exchanges that may close in the future!!!

FTX Collapse, Hotbit exchange Halts, this news proves that more exchanges in the crypto world can disappear anytime. Investors lose the most here. For this news, many have lost faith in crypto. There's no guarantee that more exchanges won't steal people's money in the future. There is no guarantee that the exchanges will provide a chance to withdraw our assets before they go away. So we have to be careful. Some research has revealed that other top exchanges are likely to close at any time. Delta exchange, Huobi, Gate.io, Bitget, Kraken and some other exchanges are risky. There are some reasons behind these exchanges being risky.

With the added expense of this kind of exchange, they hire staff and spend a lot of money on servers, which increases their budgets. They cannot provide the funds or cannot make a profit during the bear season. Another dark reality is that, these exchanges trade with funds held by users. But there is a lot of risk and manipulation in this trading. Exchanges are likely to collapse when users start withdrawing their money.

Another reason is that many exchanges provide us with wrong data. They provide fake volume so that big investors invest in these exchanges and the popularity of the exchange increases. But they can't match the data they provide. Later when these issues were revealed to the users, heavy withdrawals started in the exchanges, but the exchanges then cannot provide their funds to the users. Due to this, the exchange collapses.

In my opinion, it is better to stay away from the exchanges I have mentioned. You can use the top 3-4 exchanges or use DEX. But my words are not financial advice here. Your own research is more important. Because at the end of the day, no one is responsible for both profit and loss here.

Recent announcements on Hotbit