HotBit is a centralized cryptocurrency exchange which claims to provide a “built-in artificial market-maker digital engine that meets the standard of Wall Street industrial standards” and access to hundredths of cryptocurrencies. At the time of this writing, HotBit’s website lacks information about its founders or where is it located. Instead of presenting the real people behind the project, the website adopts a generic approach and uses several buzzwords to describe the team’s competence. It communicates the unclear message that the core members of the team have “successful entrepreneurial experience” and that the exchange benefits from “experienced global investment consultation team and various cooperation partners” to attract liquidity from “various sources”.
Its “Terms of Service” page does not provide any meaningful information either. At the time of this writing, there are no details about when was it founded, let alone which company owns or operates the exchange. The only public information about HotBit comes from its LinkedIn page which states that the exchange is headquartered in Shanghai and employs anywhere from 51 to 200 employees. According to the profile, the exchange was founded in 2017.
The lack of information or the very generic one, present on its website, may raise second thoughts in some investors on whether to use HotBit’s service. Although this may not be a primary reason to avoid HotBit, the fact that it has identical (if not copied) information with several other exchanges is undoubtedly a thing to consider carefully. Regarding its “top-notch technology”, the HotBit’s website states the following: “Hotbit has adopted advanced technologies such as GSLB, distributed server clusters, distributed storage, and a high-speed memory-based trading engine all backed up in multiple machines, cold storage locations, and hot wallets with offline private keys. Our safe, stable and reliable digital asset trading services are delivered to our customers via web interface, mobile app and PC terminals.” The same information can be found within the “About Us” pages of several exchanges, such as Ozinex (in fact, the whole page is identical with the one on the HotBit website), Grow Exchange, Binax, OkCoin’s LinkedIn page, OkEx’ profile on List.Wiki, iCoinbay, and a PR material about the dead iCoin Exchange.
On the home page of its website, Hotbit proudly announces partnerships with a variety of organizations. At the time of this writing, there is no information detailing what these partnerships really represent.
Aside from everything else, HotBit claims that it offers 24/7 customer support “to ensure the smooth operation of every user’s transactions.” However, at the time of this writing, such statements are very hard to believe, considering the number of complaints on forums such as Reddit and Bitcointalk. Users express their frustrations over faked trading volume via phantom transactions (several users report that raising the question on the exchange’s Telegram channel results in a ban), freezing website service or inability to access accounts, unreasonably high withdraw fees, loss of funds and unresponsive customer support.
On the topic of security, the HotBit website does not provide any specific information, aside from the claim that its security management system “was established in partnership with top security companies” and that it has a “multi-level firewall to monitor system data for real-time processing.” It also adds that digital assets are secured through “a multi-signature and cold-hot wallet combination solution.” The exchange highlights its commitment to providing its users with “a safe and reliable service concept, relying on professional risk control system.” The information on the website features other unclear concepts such as “multimodular structure that meets the requirement of the IT surveillance logical structure in financial industry” which, if not anything else, does not provide reasonable details about the way the exchange protects its users’ funds. What can be confirmed, though, is that HotBit employs two-factor authentication.
At the time of this writing, there is no information on whether HotBit has been a subject to hacker attacks or investigations from governmental institutions.Read More