Bybit Terminates Four Additional Web3 Services Following NFT Marketplace Shutdown

Bybit has announced that it will shut out several of its Web3 products and services in the coming months, as part of the exchange’s plan to optimize its offerings and concentrate more on long-term growth.

📢 Important Notice for Bybit Web3 Users

As part of ongoing product optimization, several Web3 services — including Cloud Wallet, Keyless Wallet, DEX Pro, Swap & Bridge, and NFT Marketplace — will be discontinued by May 31, 2025.

Please review the full announcement and take… pic.twitter.com/q8SRnedTmo

— Bybit Web3 (@Bybit_Web3) April 16, 2025

Among the services being retired are 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.

Users are being urged to transfer all assets, including tokens, NFTs, and inscription assets, to their Bybit Funding Account or Seed Phrase Wallet before the deadline. 

The company warned that failure to do so may lead to delayed access and could require extra identity verification steps.

Bybit Winds Down Web3 and NFT Services in Strategic Shift

Bybit has begun phasing out several services as part of a broader strategic realignment. As of April 8, support has ended for Inscriptions, NFT Pro, ApeX, the Buy Crypto feature, and its Initial DEX Offering (IDO) platform.

On April 28, more closures will follow, including the inscription marketplace, decentralized NFT marketplace (NFT Pro), the Apex Pro derivatives DEX gateway, and its fiat-to-crypto on-ramp. Bybit’s Web3 Points loyalty program will also be discontinued on the same day.

These moves come shortly after NFT platform X2Y2 announced a similar shutdown, signaling a possible industry-wide movement away from underperforming NFT and Web3 trading platforms.

After 3 incredible years and $5.6B in trading volume, X2Y2 will be sunsetting as an NFT marketplace on April 30, 2025. Read @tp_x2y2's full announcement below for details. 👇 https://t.co/Qj4DEJkkmy

— X2Y2 (@the_x2y2) March 31, 2025

Bybit warned users to withdraw their NFTs before the shutdown to avoid permanent loss of access. Additional Web3 trading features and Bybit wallets will also be sunset by the end of May.

Despite the cutbacks, Bybit is not retreating entirely from innovation. The exchange recently partnered with lending protocol Avalon to offer Bitcoin yield products through fixed-rate institutional arbitrage strategies.

Bybit Refocusing on Core Products Amid Post-Hack Landscape

According to an April 17 post on X, the third-largest crypto exchange by market cap, explained in detail why it’s shutting down its web3 services.

“In line with our commitment to the evolving on-chain ecosystem and delivering high-quality services to our Web3 users, we will be optimizing our current Web3 product and service offerings,” Bybit stated.

The timing of the shift also follows a major hack in February, in which Bybit reportedly lost around $1.4 billion. The exchange reassured users that all client funds remain fully backed and that Bybit remains solvent even if the stolen funds are not recovered.

Bybit’s $1.5B hack is bullish – Lazarus has diamond hands.

Led by Park Jin Hyok, now wanted by the FBI.

They’ve just drained $1.46B in staked ETH & ERC-20 tokens from Bybit, making it the biggest crypto hack ever, twice the size of the second-largest breach.

How did they pull… pic.twitter.com/OV1JzWmhYB

— arndxt (@arndxt_xo) February 22, 2025

Amid speculation, Bybit has denied allegations that it charges up to $1.4 million to list a token on its platform—a claim made recently by a social media user.

As the exchange moves forward, it appears set on streamlining its services to better align with evolving market demands while reinforcing its position in the on-chain finance space.