BitMart will stop trading and shut down completely on August 26...

Why did BitMart close its cryptocurrency exchange?

BitMart will gradually shut down its cryptocurrency trading platform after nine years of operation. All spot and derivative trading will cease on August 26 and completely terminate operations on January 31, 2027. The exchange said the decision was made after assessing its operating conditions, market environment and future strategic direction. But it did not specify whether a specific financial, regulatory or operational event forced its closure. BitMart has stopped accepting new registrations, deposits and new trading orders at 09:30 Beijing time on Sunday. Futures accounts have been moved to lightening-only mode, allowing traders to close or reduce existing positions, but not to increase exposure. During the phase-out period, the withdrawal function will remain open. However, BitMart urges users to complete identity verification, close open positions and submit withdrawal requests before the end of trading in August. This closure makes BitMart another cryptocurrency exchange to withdraw during the industry consolidation phase. BitMEX and Dango have also previously announced the closure of their trading platforms, putting additional pressure on small and medium-sized trading platforms that compete for liquidity with large exchanges around the world.

Why did BMX tokens plummet by nearly 70%?

As traders responded to the closure news and users reported slower withdrawals from the platform, BitMart's native token, BMX, evaporated nearly 70% of the value. BMX is currently trading at around $0.09464 after falling from around $0.31 late Friday. The token briefly recovered after its initial decline on Saturday, but then continued to fall and fell below $0.10. In fact, BMX has fallen by about 70% over the past year, which means that the closure has accelerated its long-term downward trend rather than a sudden weakening from a stable starting point. After the latest round of selling, its market value has dropped to about $27 million. Exchange tokens are highly dependent on the continuous operation of the issuance platform. Its uses may include transaction fee discounts, customer rewards or access to platform services. Once the exchange is announced to be closed, holders must reassess whether these interests can continue to exist. Some users also seem to confuse BitMart's BMX tokens with BitMEX and its BMEX tokens, which fell by about 90% after BitMEX announced its closure. It's unclear whether this confusion has had a material impact on BMX trading, but the similarity of exchange and token names has increased uncertainty during turbulent times.

Investor Revelation

The collapse of BMX suggests that most of the residual value of exchange tokens may disappear once the underlying platform is announced to close. Token holders are now at price risk and are also uncertain about whether there are any future uses, conversions or redemption mechanisms.

Can BitMart users withdraw funds?

Several users reported that withdrawals took longer than usual, and some requests involving Tether (USDT) remained pending for several hours. BitMart said withdrawal requests may face additional compliance and security reviews. These reviews may include identity verification, device and IP address checks, withdrawal address screening, funding source inquiries, and sanctions list checks. If the withdrawal amount increases sharply, the processing time may be further extended. Blockchain data showed that wallets belonging to BitMart held approximately $71 million in crypto assets on Sunday, down from approximately $102 million on July 6. Among them, approximately US$41.5 million of tracked assets are WFI tokens related to the stablecoin banking platform WeFi, while only approximately US$91,000 of USDT is held in the wallet. The composition of these wallets does not fully reflect BitMart's assets or customer liabilities, but the low USDT balances tracked may exacerbate user concerns, especially at a time when customers are moving funds away from exchanges. BitMart previously lost approximately $196 million due to a hot wallet vulnerability in December 2021. At that time, the exchange covered customer losses, but during the current gradual closure period, this incident is still of reference significance when users assess counterparty risk and withdrawal risk.

What does BitMart's closure mean for cryptocurrency exchanges?

Before and after the closure announcement, BitMart reported 24-hour transaction volume of approximately US$1.6 billion, of which Bitcoin accounted for nearly half. The 51% increase from the previous period may reflect customers closing positions and transferring funds rather than new trading needs. This reported transaction volume makes the shutdown even more eye-catching because BitMart is not an inactive platform. This also leaves an unsolved mystery: With continued trading activity, have revenue, operating costs, regulatory fees or balance sheet pressures made the business unsustainable? Former CEO Nenter Chow said he was told last Friday that his employment relationship was terminated and he was no longer involved in the company's management or decision-making. He said he was not consulted on the closure, but learned of the decision only after the announcement was issued. For the broader market, BitMart's exit shows a widening gap between large exchanges that can absorb compliance and infrastructure costs and smaller competitors with thinner profit margins. As liquidity is concentrated on fewer platforms, traders may benefit from a deeper order book, but at the same time their reliance on limited platforms for volume increases. The current focus will always be on withdrawals, how BMX is handled, and whether BitMart will provide more details on the financial or strategic reasons behind its closure. Until then, users are likely to prioritize moving assets from the platform as soon as possible before the January 2027 deadline.