What to know:
- BitMart will end trading on Aug. 26 and fully shut down operations on Jan. 31, 2027.
- BMX token plunged nearly 70% after the shutdown announcement amid withdrawal delay complaints.
- BitMart halted new registrations, deposits, and spot orders, while futures trading entered reduce-only mode.
BitMart, a crypto exchange, has formally declared that it will be discontinuing its trading platform in the upcoming months. Following a sharp decline in the value of its native BMX coin and a rise in user complaints about delayed withdrawals, this move was made.
In a formal announcement released on Sunday, BitMart stated that it had considered its long-term goals, market conditions, and business operations before choosing to shut down the exchange in a systematic way.
BitMart Sets Timeline for Closure
BitMart stated that all trading services will cease on August 26 and that the platform will be completely shut down on January 31, 2027.
The exchange has already ceased accepting new user registrations and deposits as part of the shutdown procedure. Spot markets no longer take new trading orders, and futures trading has been moved to reduce-only mode, which only permits customers to cancel current positions.
The company advised users to withdraw their funds before the final closure and cautioned that certain withdrawal requests may necessitate additional compliance and security procedures, which could result in extended processing times.
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BMX Token Falls Nearly 70%
Following the announcement, BitMart’s native token BMX experienced a sharp decrease. The token fell about 70% from around $0.31 late Friday to around $0.095 over the weekend.
The steep drop occurred when multiple users on X claimed that withdrawals, including Tether (USDT), were taking substantially longer than usual, with some requests sitting pending for hours.
BitMart stated that certain withdrawal requests may be subject to additional assessment throughout the closure process, but did not disclose further information on individual situations.
BitMart Wallet Holdings Decline
Blockchain data from Arkham Intelligence revealed that BitMart-linked wallets contained approximately $71 million in crypto assets on Sunday, compared to approximately $102 million earlier this month.
A significant percentage of such holdings consisted of approximately $41.5 million worth of WeFi (WFI) tokens, whereas the tracked wallets had just about $91,000 in USDT.
The news also confused social media, with some users incorrectly associating BitMart’s BMX token with the cryptocurrency derivatives exchange BitMEX and its BMEX token.
Following the steep drop of BMX, several posts in the Mandarin-speaking crypto community muddled up the two exchanges. Some users also mentioned an incorrect shutdown date of September 30, despite the exchange’s previous announcement that the platform would close on September 23.
It is unclear whether the misunderstanding had a direct impact on BMX price movement.
More Crypto Exchanges Are Closing
BitMart is one of numerous cryptocurrency exchanges that have lately declared plans to close their operations. Earlier this week, both BitMEX and Dango announced the discontinuation of their trading services, adding to the growing list of exchanges leaving the market.
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