Arkham’s on-chain analysis platform glitch sparked Bybit’s bankruptcy rumors, panicking the crypto community. Bybit has informed users of its stability and the untruthfulness of these rumors, inviting them to check its Proof of Reserves.
After erroneous reports caused $50 million in withdrawals, Bybit reaffirmed its financial soundness. The rapid spread of Bybit’s bankruptcy rumors has raised concerns and suspicion.
Arkham’s on-chain analytical software misrepresented Bybit’s asset decline, causing fear. Bybit quickly addressed these rumors and clarified the situation.
Rumors driven by false images caused large money withdrawals. Over $50 million was withdrawn, according to DefiLlama co-founder 0xngmi. Compared to Bybit’s assets, 0xngmi said these withdrawals are modest.
Bybit recommended checking its Proof of Reserves (POR) report to reassure consumers and stakeholders. This study uses Nansen and DefiLlama data to verify asset stability.
The crypto community is more cautious after this occurrence. The 2022 crashes of FTX and Celsius raised doubts about crypto exchanges’ viability.
These rumors aren’t new to Bybit. The strange deletion of the “MEXC_CEO” Twitter account raised similar worries about MEXC in December 2023. Social media complaints regarding blocked assets raised crypto exchange financial concerns.
Bybit’s prompt statement should comfort users and investors. This episode illustrates the fragility of crypto trust and the quick spread of disinformation, which affects market stability and investor confidence.
The crypto business needs open communication and transparency after Bybit’s bankruptcy rumors. Bybit’s prompt response and Proof of Reserves demonstrate company stability, which builds confidence.
