Huobi, a well-known cryptocurrency exchange, announced that its Layer 1 blockchain, the HECO Network, will officially shut down on January 15, 2025. This news has led to concerns among users holding HRC20 assets.
HECO Shutdown Plan
HECO, also known as the Huobi Eco Chain, was launched to provide blockchain solutions with a focus on DeFi and decentralized applications (dApps). The blockchain gained popularity due to its low transaction costs and fast processing, making it appealing to developers and investors.
Key Deadlines for HRC20 Token Holders
HRC20 asset holders must take action before the closure date. By January 10, 2025, users are required to deposit their assets into designated addresses on the official HecoDAO website. To ensure smooth redemption, users must provide their TRON network addresses when depositing assets. The assets will be converted into points based on their market value as of November 10, 2024. These points can then be redeemed for HTX, the native cryptocurrency of the Huobi ecosystem, with the conversion limited to 200,000 HTX per point. The distribution process begins on January 15, 2025, and will occur over 12 months.
Security Concerns and Past Incidents
In 2023, the HECO chain bridge was targeted by hackers, who stole over $87 million in assets, including ETH, Tether (USDT), and HBTC. These assets were sent to an Ethereum wallet and later distributed to multiple others. Blockchain security firms, such as CertiK, PeckShield, and Cyvers, found that the breach occurred due to a compromised private key. Justin Sun, a controlling figure in Huobi and the HECO ecosystem, confirmed that HTX would fully compensate users for the stolen funds.
The closure of the HECO blockchain requires users to carefully manage their assets to ensure their security. This news highlights the importance of security in cryptocurrency networks and underscores the need to meet all requirements for seamless asset transfers.
