Hotbit allegedly faces liquidity problems; users pay 0.50% fees to deposit funds
In Brief
Crypto exchange Hotbit might be facing liquidity problems
Users that wish to deposit funds need to pay a 0.50% fee
Hotbit also makes customers pay a 10 to 50 $USDT fee for the withdrawal of any cryptocurrency.
Chinese cryptocurrency exchange Hotbit, used by many risk-averse investors, seems to be facing liquidity problems.
In 2021, the Hong Kong-based exchange shut down due to an attempted hack that took place on April 30. Back then, Hotbit’s chief security officer Alex Zhou claimed that customers’ funds were safe. According to the company’s statement, all funds had been transferred from a hot wallet to a cold one. The platform continued to function normally; however, it seems users’ data was compromised.
In August 2022, Hotbit suspended trading, deposit, withdrawal, and funding functions. The platform did so due to alleged criminal ties of the company’s former management employee. According to the exchange’s announcement, law enforcement froze the funds and prevented the exchange from normal functioning.
Months have passed since the incident, and Hotbit now seems to be facing liquidity problems. As of today, the platform’s users need to pay a 0.50% fee to deposit their funds. More than that, Hotbit makes customers pay a 10 to 50 $USDT fee for funds withdrawal. Interestingly, users have to pay gas fees in $USDT for any cryptocurrency withdrawal, including shitcoins.
“The actual amounts of tokens deposited unto your account will be the amount of tokens that you deposited deduct the deposit transaction fee,” explains the transaction page of the platform.
Does this mean the bad luck followed the crypto community into the new year? November 2022 saw the sudden and unexpected fall of FTX, which shook the crypto community to its core. Has Hotbit found itself in hot water over liquidity issues? Only time will tell.
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About The Author
Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at valerygoncharenko@mpost.io
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Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at valerygoncharenko@mpost.io
