Recent industry updates have revealed that Bybit is shutting down multiple Web3 services by the end of May 2025. According to an April 16 notice, this Bybit Web3 Shutdown is a “refocused push toward innovation and scalability in the onchain ecosystem” even though some users are confused about the suddenness of the change.
Among the services being terminated are Bybit’s Cloud Wallet and Keyless Wallet, which will be fully shut down after May 31. This includes the DEX Pro platform, Swap & Bridge services, and the entire NFT Marketplace. The company says this is not a retreat from Web3 but a turn around to streamline its core offerings.
What’s Bybit Web3 Shutdown About? And Why It Matters
The Bybit Web3 shutdown includes several core services that had been the backbone of the exchange’s non-custodial ecosystem. In addition to the wallets and marketplace, the Web3 Points program will be sunsetted on April 28. Based on reports, support for NFT Pro, ApeX, and Initial DEX Offering (IDO) platforms had already ended this month.
Bybit cited operational realignment and user safety as the top reasons for the overhaul. Users are advised to withdraw their assets, including NFTs, inscription assets, and tokens before the deadline to avoid permanent loss. For the Keyless Wallet, Bybit will provide a private key export tool soon but warned once exported the wallet will be irreversibly deleted.
Industry insiders say this is a broader reevaluation among centralized platforms as regulatory scrutiny increases and profitability models in Web3 come under pressure.
Not a Retreat—A Refocus on Onchain Growth
Despite the Web3 rollback, Bybit says this is not an exit from the decentralized frontier. Services like Airdrop Arcade, staking products, and full functionality for Seed Phrase Wallets will remain active.
Bybit explained the shift as an “intentional streamlining of resources” to better align with onchain growth, meaning a move towards direct Layer 1 and Layer 2 integrations rather than third-party dApps and side offerings.
A Bybit spokesperson said:
“We’re entering a new phase of our onchain journey. By focusing on fewer, higher impact initiatives we will deliver a more efficient, secure and user centric Web3 experience.”
The timing coincides with Bybit’s increasing focus on native DeFi protocols, with ongoing work on Ethereum Layer 2 solutions such as Arbitrum and zkSync, according to sources.
Crypto Market Implications: A Wake-Up Call for Overextended Ecosystems
The Bybit Web3 shutdown is a bigger question mark for how centralized exchanges manage decentralized projects. Industry insiders say Web3 service sprawl without long term user stickiness has created operational inefficiencies for exchanges.
Henry Liu, former CTO of a rival platform, said:
“Many CEXs tried to do too much in Web3. Wallets, marketplaces, staking—all layered on top of each other. But without a killer use case or critical mass, these efforts became dead weight. Bybit’s retrenchment is a healthy reset.”
For token ecosystems that relied on Bybit’s infrastructure, especially NFT creators and cross-chain bridges, this means less exposure and liquidity fragmentation. It also shows how fragile it is to rely on centralized platforms to host decentralized assets.
Where Does This Leave Web3 Builders?
The shutdown also raises a deeper question in crypto: Should centralized exchanges be gateways to Web3, or is their involvement inherently contradictory?
Bybit is winding down its consumer-facing Web3 stack while keeping DeFi rails intact, so it sees more long-term value in enabling Web3 infrastructure rather than owning it.
The crypto community is divided. Some worry this creates onboarding friction for newbies who benefited from seamless access to NFTs and bridges. Others believe this will finally separate signal from noise and force dApp developers to build sustainable, user-driven ecosystems.
End of an Era or Beginning of a Smarter One?
Bybit Web3 Shutdown move may seem drastic, but it might be prescient. In an industry full of short-lived fads and hollow tokenomics, rationalization is long overdue. Instead of chasing trends, the exchange is now focused on building around performance, security and modular design.
As the dust settles, what’s left is a leaner Bybit with a sharper focus—and potentially a template for how CEXs can evolve into onchain enablers rather than gatekeepers.
FAQs on Bybit Web3 Shutdown
Which services are affected by the Bybit Web3 shutdown?
Bybit is discontinuing its Cloud Wallet, Keyless Wallet, NFT Marketplace, DEX Pro, Swap & Bridge, and Web3 Points program by May 2025.
Will users lose their NFTs and tokens after the shutdown?
Users must transfer all assets by May 31, 2025. Failure to do so may result in permanent loss, especially for NFTs.
Is Bybit leaving Web3 entirely?
No. Bybit will continue to offer staking, Seed Phrase Wallets and access to dApps. The shutdown is to streamline and optimize.
Why is Bybit doing this now?
Bybit is refocusing resources on scalable and high-impact Web3 infrastructure, citing efficiency and user-centric innovation.
How does this impact the wider crypto industry?
This is a watershed moment for CEXs involved in Web3. Others may follow suit to consolidate and rethink their decentralized ambitions.
Glossary
Cloud Wallet: A custodial crypto wallet hosted on centralized infrastructure.
Keyless Wallet: A wallet solution that eliminates user-controlled private keys, relies on custodial access.
DEX Pro: A decentralized exchange platform that operated within Bybit’s Web3 suite.
NFT Marketplace: A platform where users can buy, sell, and trade non-fungible tokens.
Onchain Ecosystem: A blockchain-based environment where applications and assets operate without intermediaries.
References
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