Huobi, a cryptocurrency exchange, has said that it would end its Huobi Cloud Wallet platform five years from now, in May 2023, citing “strategic and product modifications.”
The maintenance and updates of the multitoken wallet service will formally come to an end on February 13, according to a notification that was posted on Huobi’s support website. Users who are still using the cloud wallet are being advised to move any cryptocurrencies and nonfungible tokens (NFTs) that they have to their primary Huobi accounts or to other wallet addresses.
The withdrawal and transfer functionalities of Huobi Cloud Wallet will continue to operate for the next three months; however, users are strongly encouraged to refrain from transferring digital assets to their cloud wallets during this time. The official date that Huobi Cloud Wallet will be decommissioned is May 13th, 2023.
After Huobi Group made an investment of $200 million, the Huobi Wallet name was changed to iToken five months later in May 2022. The Huobi Cloud Wallet was first introduced in October 2021 as a feature of the Huobi Wallet. It enables users to handle digital assets without the need of private keys and was initially rolled out as part of Huobi Wallet.
The provision of a service for custodial wallets was done with the intention of facilitating simpler access to apps and services related to decentralized finance (DeFi). Users of Huobi Cloud Wallet were able to store tokens without having to take responsibility for their own private keys thanks to a third-party management system that held users’ private keys in escrow.
Users of Huobi Global were promised a smooth synchronization with the cloud wallet service, as well as the ability to move tokens between the two platforms in order to access a variety of other DeFi projects.
Huobi also made headlines in January 2023 when it delisted 33 different tokens because they had broken various requirements to be listed on the exchange platform. This caused Huobi to be in the news. Following Justin Sun’s acquisition of the business, the stock exchange announced at the beginning of the year that it intended to implement a reorganization that would include the layoff of twenty percent of its workforce.