Huobi’s HECO Network Set to Shut Down in January 2025

HECO Network to Shut Down

As HECO Network prepares for its shutdown in January 2025, users holding HRC20 tokens must act quickly to ensure their assets are properly transitioned.

The network, which was part of Huobi’s broader blockchain ecosystem, is urging holders of tokens like HRC20ETH, HRC20USDT, and HRC20LINK to move their assets ahead of its official closure on 15 January 2025.

How Are HRC20 Assets Being Converted?

Holders of these assets are instructed to deposit their HRC20 tokens to addresses listed on HECODAO’s website by 10 January 2025.

Upon deposit, these tokens will be converted into points—1 USDT equals 1 point, based on the value on 10 November 2024.

The process is designed to ensure a seamless transition of assets into Huobi’s new native token, HTX.

These points will be directly tied to users’ HECO wallet addresses, with the final exchange into HTX tokens taking place in 12 stages starting from 15 January 2025.

After the January deadline, there will be no further deposits accepted, and users must provide their TRON network address to receive their HTX tokens via the TRON blockchain.

The End of an Era for HECO Network

HECO’s closure marks the end of its four-year run in the blockchain space, with the platform once boasting a peak total value locked (TVL) of around $3 billion in 2021.

However, in recent years, it has faced growing competition from other blockchains like Ethereum, Solana, and Binance Smart Chain.

The rise of new entrants like Avalanche and TRON has only compounded its struggles.

Despite its early promise, the network never fully recovered from the market downturn that affected many projects across the industry.

What Led to HECO’s Decline?

Several issues have contributed to the downfall of HECO Network.

A significant blow came in November 2023 when the HECO Bridge was hacked, resulting in the theft of $87 million in various cryptocurrencies, including large amounts of Ether and Tether.

This hack, coupled with a separate $30 million breach of HTX’s hot wallets, put a considerable strain on the platform’s reputation and user trust.

HTX, part of the Huobi ecosystem, was no stranger to controversy.

The exchange’s transition in 2024 from its original HT token to the new HTX token raised concerns among its community.

Some users viewed this change as an abandonment of the HECO blockchain, further distancing themselves from the platform.

The shift also followed the large-scale security breaches that affected both HECO and HTX.

Despite these setbacks, HTX reassured its users that it would compensate for the losses caused by the hacks.

HTX Token – A Rocky Road Ahead

Following the announcement of HECO’s shutdown, the HTX token saw a notable dip.

It dropped by 5%, trading at $0.00000178 shortly after the news.

While it has shown some recovery, increasing by 10% in the past week, its overall performance remains volatile.

Currently, the token stands at $0.000001846, down around 1.17% over the last 24 hours, and its value has seen a significant 27.5% increase over the past month.

Regional Exchanges Closing – Is the Market Shrinking?

The broader market has also been affected by recent closures.

Earlier in 2024, Huobi Korea—originally part of Huobi Global—shut down after severing ties with HTX in 2023.

Other regional exchanges, like Cashierest and Coinbit, also ended operations due to increasing market pressure and competition.

Time Is Running Out for HECO Holders

With the final transition of HRC20 assets fast approaching, users holding tokens on the HECO Network need to act swiftly.

Failing to do so before the 10 January 2025 deadline could result in the loss of their holdings as the network discontinues its operations.

These developments serve as a stark reminder of the volatility and risk in the cryptocurrency space, especially for users relying on smaller platforms like HECO, which, despite its ambitions, could not weather the storms of market competition and security vulnerabilities.