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Greg Moritz of AltTab Capital offers his insight on Hotbit halting its operations.
Hotbit announced this week that it would be halting operations and asking its users to withdraw funds before June 21, at 4:00 am UTC. In the announcement, the exchange said that its operating conditions have deteriorated since a former member of its team was subjected to an investigation in August 2022. According to the exchange, the probe forced it to stop its business for weeks.
AltTab Capital’s Co-Founder Greg Moritz, has been following this news closely, and he's shared his views with us.
“As another questionably regulated exchange shuts down, the gap between the products available to retail and institutional traders is once again on display. Counter-party risk is one of the most dangerous aspects to retail crypto traders and is yet another reason why investors may want to look towards regulated funds that use qualified custodians to hold their crypto.
That increasing regulation was enough to shut down HotBit brings into question how legitimate their operations were in the first place. Their proud claim to be the exchange with the most coins listed is a dubious honor because it suggests a lack of proper vetting. This is just one of the reasons many investors might be better off working with regulated funds that use qualified custodians, rather than some of the sketchy exchanges available to retail traders.”
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.