The HECO Network, Huobi's Layer 1 blockchain, is set to officially retire on January 15, 2025, according to a recent announcement. Users must take specific actions to secure their HRC20 assets.
Key Deadlines for HRC20 Token Holders
Users holding HRC20 assets need to take action before the network's shutdown. By January 10, 2025, users must deposit their assets into designated addresses on the HecoDAO website. To ensure smooth redemption, TRON network addresses must be provided upon deposit. Assets will be converted into points based on their market value on November 10, 2024, with each 1 USDT equivalent to 1 point. These points can then be redeemed for HTX, with a conversion cap of 200,000 HTX per point. Distribution of tokens will begin on January 15, 2025, over 12 monthly payments.
Security Concerns and Past Incidents
In 2023, the HECO chain bridge was hacked, stealing over $87 million in assets, including ETH, Tether (USDT), and HBTC. The attack was attributed to a compromised private key, resulting in the loss of funds from HTX’s hot wallets. Blockchain security firms like CertiK, PeckShield, and Cyvers analyzed the breach. Justin Sun, overseeing Huobi and HECO, confirmed HTX would fully reimburse users for the stolen assets.
Impact on Users and Community
The shutdown of the HECO Network significantly impacts users and developers utilizing the blockchain for dApps and DeFi. Known for low transaction costs and fast processing, the platform's closure may drive users to seek alternative solutions for their projects.
The announcement of HECO Network's closure introduces uncertainty for users and developers relying on this platform. Timely asset transfer actions can help avoid losses and facilitate a smooth transition to new opportunities.
