Bybit is shutting down more of its Web3 services after axing its NFT marketplace

Bybit is shutting down its Cloud Wallet (a hosted custodial wallet​), Keyless Wallet (non‑custodial multiparty computation wallet with no seed phrase​), NFT marketplace, multi‑chain decentralized exchange (DEX)​ DEX Pro and the Swap & Bridge cross‑chain swap widget​ on May 31.

Leading cryptocurrency exchange Bybit is shutting down more of its Web3 services.

The exchange will be shutting down its Cloud Wallet (a hosted custodial wallet), Keyless Wallet (non-custodial multi-party computation wallet with no seed phrase), NFT marketplace, multi-chain decentralized exchange (DEX) DEX Pro and the Swap & Bridge cross-chain swap widget on May 31.

On April 28, Bybit will also discontinue Web3 Points, its internal loyalty program that rewarded onchain activity with redeemable points for fee discounts, airdrop boosts and early-bird perks.

On the same day, the exchange will shut down its inscription marketplace, the decentralized NFT marketplace NFT Pro, the gateway to the Apex Pro derivatives DEX, its fiat-to-crypto on-ramp, and its initial DEX offering service.

Earlier this month, Bybit announced that it would be shutting down its NFT marketplace. The decision follows a similar decision by major NFT marketplace X2Y2.

However, the firm is not just cutting products. Recent reports indicate that Bybit has integrated the Bitcoin (BTC) yield product of lending protocol Avalon to offer Bitcoin yield to its users. Avalon said it will allow the platform's users to earn yield from Bitcoin by arbitrating on its fixed-rate institutional borrowing layer.

Bybit recently denied claims that it charges $1.4 million to list a token on its platform, following allegations made by a social media user.

The exchange said it is shutting down the services in order to focus on the quality of its core products.

"As part of our commitment to providing the best possible products and services to our users, we are constantly evaluating and adjusting our offerings to meet their evolving needs," said the exchange.

"After careful consideration, we have made the difficult decision to discontinue several of our Web3 services and internal programs, effective May 31, 2023. This strategic pivot will enable us to concentrate our efforts on enhancing the quality of our core products, ultimately delivering an even more seamless and enjoyable experience for our valued community."

These apparent cost-cutting efforts by the company follow Bybit's loss of about $1.4 billion in a major hack.