Bybit Bounces Back After Record Crypto hack, Thanks too Retail Investors
Bybit, a major crypto exchange, is on the mend following the biggest crypto hack ever, which cost the platform $1.6 billion. A report by Block scholes, commissioned by Bybit, sheds light on the situation and the exchange’s recovery.
Initially, Bybit’s market share plummeted from 10% to 4% after the hack. But it bounced back to 7% within weeks. Trading volumes and order book depth also stabilized quickly.
The report notes that while the hack caused a brief dip in trading volumes and order book depth, especially for BTC and ETH, the bid-ask spreads remained tight.This indicates that market makers stayed active, keeping the market efficient.
Bybit’s recovery is partly due to its focus on retail investors. The exchange launched Retail Price Betterment (RPI) orders, exclusive to retail traders using the app. This feature aims to give individual investors a fair chance.
RPI orders proved popular, with higher liquidity than regular orders. This helped maintain tight spreads for retail traders, stabilizing the market.
According to the report, RPI orders played a crucial role in stabilizing liquidity, marking the first step in Bybit’s efforts to reclaim its spot in the crypto trading market.
