Topic: Hotbit stops operation - page 2. (Read 794 times)

They lie that that fee is related to the current state of the network. If so, the value of the fee would vary up or down, but with them, that amount (48.2205 USDT) is fixed for days. Certainly, at the time when they worked and were operational, the most common fee was 1-3 USDT.
So it's just a lame ploy to discourage anyone with less than ~48 from withdrawing their money. From Hotbit's point of view, it is a completely legitimate way of embezzling other people's money.


It is probably the option of choice, you can withdraw and pay a fee either in BTC or in USDT.

I'm unfamiliar with altcoins fees, but ....$48? Isn't this like 10 times the average now?


0.001 BTC is $27 , what is with the 99 USDT?
Also, let me get this right, you deposited a few satoshis to reach the 0.002 BTC limit as you had less than that and then you paid 0.001 BTC in fees? Was it even worth it considering you had to pay also the blockchain fees for the deposit?

☝ It's the same for Bitcoin, you can only withdraw them through one blockchain(btc legacy), the fee is pretty high : 0.001BTC or 99.99 USDT and the minimum amount for withdrawing is 0.002BTC.
But the withdrawal worked quickly and smoothly for me, I've even made a small deposit in order to reach the minimum threshold, and it has been alright too.  

https://www.hotbit.io/dw/withdraw?symbol=BTC

So, these scum have decided to keep the user's funds as long as they can.
I have some shit tokens there, it's not worth anything, but I wanted to try to withdraw them from there. So how is the whole process going...

At first, I was surprised because I noticed that the token was not enabled for withdrawal. After I sent an email asking why this is so, I got a reply from them very quickly to send them a screenshot with the problem. To my surprise, when I went to do SS, a "miracle" happened and I saw that withdrawal was enabled???
OK, that's fine. However, they tried their best to drag things out. Withdrawal of that token cannot be sent via the Polygon network (disabled), but only via ERC20, where the fee is of course only 48.2205 USDT.

I get a uniform answer to all further questions, even though it has nothing to do with reality.




It is an almost miserable amount, but their transparency and "goodwill" are obviously just a story. Well, the good thing is that they are going down in history.

Very thoughtful of you. 5 million is extremely high and no sane manager would want to give up on a project with upto 5 million userbase. Project owners are fond of hyperbolizing information, especially when there's no easy way to verify such information.

You are 100% correct--but I would suggest that that's the natural order of things.  Back in the early days of the internet, every business was trying to build their own website to sell their wares and it was a big deal.  Lots of people had their own websites where they'd blog and whatnot.  Compare that to today, where if you want to buy something online you're usually heading to one of the big names, e.g., Amazon, eBay, and the like.  Plus there are so many more examples in real life of consolidation through buyouts and mergers that I've been expecting these little exchanges to get bought out or put out of business by the large exchanges.

As far as Hotbit is concerned, I don't know why exactly they're closing up shop (I haven't read this thread in its entirety, btw) but it's hard to believe they had a userbase of 5 million customers.  That seems extremely high.  And as I said, I confused them with the other exchange which IMO is incompetent.

You got my attention here and I can say there is a coincidence of thought here.
It's unfair if we decide to keep blind eyes at the hash treatment that exchanges are getting from governments these days. Hotbit having being in the industry of cryptocurrency for about 5yrs and deciding to wind up at this time, shouldn't depict incompetence. I read that they had a userbase of over 5 million.
Genuinely bowing out amids harsh conditions should be a point of accolade to the exchange and not a thing of mockery. They are trying to be sincere, what would have happened if they tried to stretch it to the point that the failure becomes catastrophic and users lose money.

I have read more than 3 places where exchanges gave official notice of winding up, I mean it should at this point become a thing of scary, the exchange business is speedily on the lane of monopoly. What's the way out?

Yeah, my bad.  And oddly enough, I happened to stumble across what I think confused me in the first place:

https://coinmarketcap.com/currencies/curecoin/markets  **Ah, shit.  I thought imgur still worked and was going to post a pic.  Guess I'll have to register on one of the alternatives**

I said it was some random shitcoin that traded there, but while Curecoin might be a lousy coin the way it's mined (sort of like Gridcoin) is useful for science.  Anyway, if you look at the screenshot you can see one of the major problems when a small exchange goes out of business, i.e., some coins might only be traded there and if you eliminate the entire marketplace you're stuck with a coin and no place to trade it.

OTOH, Coinmarketcap doesn't acknowledge every single exchange out there.  CURE is actually listed on Altquick.com, which is owned by BayAreaCoins (or was last I knew) but you'd never know that if you just went by CMC's info.

Anyhow, thanks for the correction; it was HitBTC I was thinking of.

A month should really be sufficient or long enough and at least it is really that they do give out a month period for people to pull out their funds. If you are a Hotbit user then you would surely be
surely be able to see that huge bold text "Hotbit stops running at 04:00 am on 22 May 2023 UTC" and having a link for such announcement. Its true that i do agree on that debt and competition is
the actual reason. We know on how many platforms that we do have in the market today on which the platform who does have generate lesser volume then they would be having less revenue
and considering about operation cost and expenses then the ones who couldnt sustain are the ones who would really be wisely be making out decisions on closing their doors.
Somewhat there's really a point on that government pressure on what others been saying but im not really believing into this 100% for such reason.

Of course, every crypto exchange that crashes and ends up closing, surely they have reasons for the end goal.

As far as I know there are three reasons stated by Hotbit for this incident.


Bottom line: to anyone here using the Hotbit exchange, try to clear assets before their announced date.

If we want to describe of what happened in two words then competition and debt. Most of the current platforms were working to make developers and owners rich quickly because they know that this market changes every 4 to 8 years and you will not find a platform that lasts for more than that, without continuous development they will not succeed in competition and then it will be It is difficult to convince users of the importance of using this platform.

The debt is the second part, as the interest cost has increased, and there is no immediate hope that the price will regain previous values during the current year.

---

Does anyone know what will happen if a person does not withdraw his money within a month? a month is very short and certainly not everyone will be able to withdraw their money.

That is from Hotbit forget to mention

Bit confused. Is this from hotbit or from the exchange you first talked about?

Usually every time there is a CEX closing there will be a notification via email but Hotbit doesn't do that, only makes an announcement on Twitter maybe some people won't know about this update.

Luckily I don't have any assets in Hotbit exchange after many say that this exchange is very shady then if users still have balance there with withdrawals can't be done how do they withdraw those funds? Do you have to contact support first to do this?
I didn't open a hotbit account for a long time.

About their business dealings I may not know, but your statement is true where they are unprofessional in conducting business with several accusations that came out from many parties, but it was their decision to close CEX yesterday.

One month should be enough for people to withdraw their funds if the process is easy and workout problems. If every depositor gets his funds back then the exchange has shown that they are genuine. But some customers are complaining that they cannot withdraw their funds because the withdrawal option is not operational. I am sure Hotbit engaged in some unprofessional business dealings that led to the loss of funds. They also complained of diverse cyber attacks that affected them negatively. This is a clear indication that they were not upgrading or investing in security.

Including the fall of FTX as a major reason for their problems proved the predictions that more exchanges will collapse. The government wants to ensure that it controls the crypto space so we have to expect more strict regulation. The best option remains to keep your coin in a wallet you have total control over.

Hotbit was saying they don't accept users from the US in the first place, but, there are clearly a few cracks there:


If 10 years after MtGox and with the FTX fiasco still fresh people still leave their coins unattended for more than one month on an exchange with already a shady reputation, they should leave cryptos alone and stick to stocks and banks.

If other exchanges were able to survive, then I think it's possible for them to survive in the business. So, I don't really believe that's the main reason. It's likely that they have violated regulations or there's something more serious going on that would benefit them personally. You know, some exchanges have been involved in exit scams. Hopefully, that's not the case with Hotbit, as users will certainly suffer.

They've mentioned about difficulty in compliance but, I think they're just trying to get out and using it as an excuse since it's been seen with other exchange's closure.

They've just posted it on their Twitter and it was all of a sudden. I think one month isn't enough for everyone to withdraw their funds but still, they've given time for everyone to withdraw it. But, I pity those that have missed this update and still got funds there and might miss this threshold of time for withdrawal.

Exactly, a serious business won't find these compliance as a hindrance to their operations. But it seems that they've given up and just trying to pull things out of these regulations. Although these regulations are certainly difficult for these business but can't also remove that fact that they might just use it as reason for some other reasons they're trying to hide.

True.

I have seen folks that have posted in the forum as well trying to recover those funds from unknown exchanges that have already announced their closure. We're seeing still a domino effect and we're not even in a bear market.

They have to give timeframe for their users if there are still remaining funds but a month for all of these is unfair and short.

Really? I don't use them but didn't know that they're still one of those exchanges that have allowed users not to push for KYC. But then, everything has come to an end for them. As for those newly listed coins, the devs might contest to them after knowing this closure.

After reading some of their partners and some info about them, it seems that this is more of Chinese focused exchange, maybe there's something within their border and stuff and could it be that there's a pressure on that part.

I agree that 1 month isn't really that enough for most users. IIRC, most of these closures give around 1-3 months for everyone to give it time for withdrawal but then, they're hasting on the process.

This is exactly what I thought. They can't just leave and start business afresh in a different country. Establishing in another country can be quite expensive, especially for a small exchange like Hotbit. It's illogical to compare them to Binance. The competition in CEX is really high.

Yea, Hotbit got a lot of negative reviews. I have never used them. Their assets were even frozen some time last year.
Ive never heard of an exchange like "HITbit". Maybe you mean "HitBTC".

I actually had the same feeling the last Exchanges shutdown is qtrade.io you guys might never hear of it, but they give more than a month At least 6 month if I don't mistaken and if we look at the site https://qtrade.io/ we can still email them to withdraw our money.

Their operation is in China the amount of freeze amount might not yet be recovered.

and Last is this, it seems BTC, USDT and ETH Withdraw button has been disabled