Bybit CEO bluntly states: TON's peak hype has passed

Recently, Bybit CEO Ben discussed global regulatory issues and answered questions about how long the Telegram Mini App trend can last in a media interview. According to data from CoinMarketCap, Bybit's spot and derivatives trading volumes have consistently ranked in the top two to three positions. We may be able to glean industry trends from the interview from the perspective of large centralized exchanges.

US Market Risks Too High, Not Worth the Trouble

When asked about regulatory issues, Ben first stated that Bybit never intended to enter the US market, and not a single one of its 1600 employees holds a green card. The reason being that he himself had received education in the US and understood the regulatory environment there. Once entangled with US regulations, it is difficult to get out. As the exchange business grows, it easily attracts attention, and thus, he never planned to enter the US market. As a reference, even a relatively smaller exchange like Kraken is currently facing a lawsuit filed by the SEC and is in the litigation process.

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He mentioned that similar issues are easier to resolve in other regions. Exchanges in China or the US usually choose to hire locals in Europe or Southeast Asia to handle compliance matters. However, once the US market expands, it is hard to avoid political issues. He believes that the risks in the US market are too high and simply not worth touching.

Compliance is the Only Way, Bybit Admits Heavy Regulatory Pressure in the European Market

He then explained why many exchanges have relocated their headquarters to Dubai, as the environment there truly welcomes the crypto industry, rather than assuming it is criminal by default. Whether in Dubai or the UAE, the local governments recognize that the oil industry is unsustainable, thus they see the crypto industry as an opportunity. For example, Dubai not only provides support but also offers convenient measures such as visas, which is why they moved their headquarters there.

He then mentioned the European market, stating that the top three exchanges might exit the European market this year, allowing smaller exchanges to seize the opportunity. For instance, Bybit has started KYC procedures in Germany, which is a necessary step for compliance but also means sacrificing some users. Exchanges with slower compliance progress have an advantage, especially in derivatives.

He said that Europe is one of the largest markets globally and cannot be abandoned. However, regulatory pressures have led many exchanges to consider obtaining the MiCA license by cutting off certain functions, while smaller exchanges unwilling to obtain licenses can take advantage of this situation. Bybit still aims to obtain the MiCA license, but he also admitted the immense regulatory pressure in this regard.

Hamster Mini App's New User Acquisition Effect May Disappear

Finally, he mentioned the new user acquisition effect of the TON ecosystem, stating that they had noticed the TON ecosystem a long time ago, but only recently found a way to convert a large user base through gamification combined with tokens to attract users. However, he also mentioned that many have tried to imitate this successful model, and the next teams may need to carefully evaluate, as most games actually involve the same group of users.

He mentioned that in the past half year, one TON token brought in a million registrations, with half a million depositing users. However, following the recent issuance of TON games by Hamster, the new user acquisition effect of the Telegram Mini App is expected to decline. Returning to the essence of gaming, the industry requires innovation, as merely replicating games will not sustain in the long run.