"End of an Era: HECO Network Shuts Down After Four Years"

Users urged to act swiftly to redeem assets before the January deadline.

HECO Network, the decentralized blockchain platform created by Huobi, is officially shutting down on January 15, 2025, marking the conclusion of a four-year journey. This announcement signals the end of a blockchain once heralded for its low-cost and efficient environment for decentralized application (dApp) developers.

Launched in December 2020, HECO aimed to revolutionize decentralized finance (DeFi) within the Huobi ecosystem. At its peak, the platform boasted a total value locked (TVL) of approximately $3 billion in 2021. However, the blockchain has struggled to maintain relevance in a competitive landscape dominated by Ethereum, Binance Smart Chain, and Solana, while also contending with rising stars like Avalanche and TRON.

Adding to its challenges was the devastating $87 million hack of the HECO Bridge in November 2023. The exploit, attributed to a private key breach, resulted in the theft of various cryptocurrencies, including Ether and Tether. This incident severely damaged user trust, accelerating HECO’s decline as users and developers migrated to more secure platforms.

Final Call for Asset Redemption

As part of the network's closure, HECO users holding HRC20 assets such as HRC20ETH, HRC20TUSD, and HRC20USDT must deposit their holdings to designated addresses by January 10, 2025. These assets will be converted into points, redeemable for HTX, a new token introduced by the ecosystem’s transition to the TRON network.

The HTX token distribution will occur in 12 equal batches, starting on January 15, 2025. Users will need to provide a TRON wallet address during the redemption process to claim their allocated HTX. This phased distribution aligns with Justin Sun’s vision for HTX’s integration into TRON’s broader ecosystem.

Justin Sun’s Role and Community Reactions

Justin Sun, founder of TRON and key figure behind HTX (formerly Huobi), has reassured users that efforts will be made to ensure a seamless transition. Following the 2023 attacks on both the HECO Bridge and HTX wallets—which collectively resulted in losses exceeding $100 million—Sun confirmed full compensation for affected users. This commitment aimed to restore confidence, but the damage to the reputation of both HECO and HTX lingered.

HTX has since pivoted towards its DAO (Decentralized Autonomous Organization) model, encouraging greater transparency and community participation. However, the controversial transition from Huobi’s original HT token to HTX tokens left many users feeling abandoned.

Crypto strategist Eliza Wong reflected on the situation: “The HECO Network was once a trailblazer, but its inability to evolve amidst fierce competition and security vulnerabilities spelled its downfall. While HTX may offer a fresh start, the legacy of HECO is a cautionary tale for blockchain ecosystems.”

The Ripple Effect on HTX Token and Beyond

Market sentiment has been volatile in the wake of the announcement. HTX’s governance token has seen sharp fluctuations, with a slight 2% dip over the past 24 hours to $0.00000183, though it remains up 27% over the past 30 days. Analysts attribute this resilience to Bitcoin’s recent recovery above $98,000, buoying broader market confidence.

Despite the turbulence, the HTX team remains optimistic about the future. “The closure of HECO allows us to focus resources on building a more secure, scalable, and inclusive blockchain ecosystem,” a spokesperson from HTX stated.

As HECO fades into the history of blockchain development, its story serves as both a reminder of the sector's rapid evolution and the vulnerabilities inherent in decentralized systems.

photo source / Blockonome