Huobi has announced that it will cease to maintain and upgrade its cloud wallet service and, by May 2023, it will be closed completely due to strategic and product adjustments.
Originally launched in 2021, the wallet was created to enable customers to manage their tokens without needing to access or store their private keys. The Huobi team’s goal for designing the Huobi wallet was to reduce the barrier of access to decentralized finance (DeFi) apps and other services. So, it was designed for entry-level or inexperienced users to make things easier for newcomers to the blockchain world to participate in various DeFi projects.
After Huobi Group invested $200 million into the cloud wallet service, it was rebranded to iToken in May 2022. The wallet service allowed its users to store their cryptocurrencies with a secure third-party management system holding each users’ private keys in custody (like an escrow). Since then, users seemed to enjoy a smooth experience as the cloud wallet offered users the flexibility to transfer tokens between platforms and access without worrying about private keys.
In October last year, Huobi welcomed Justin Sun as one of the advisors and policy leaders. From that time, the company began rebranding, and Huobi Global has taken a different shape.
With several rumors about layoffs and ongoing changes in the company, it has also taken great care to reassure members of the public of its commitment to customer security.
In a tweet, Justin Sun stated that Huobi has a strong focus on technology and security.
So, what happens next for the current Huobi cloud wallet users?
Huobi advises users to transfer their tokens to their Huobi main accounts or other wallet addresses as soon as possible. Its cloud wallet will allow them to withdraw and transfer from now until May, and the company asks users not to transfer any coins or NFTs to the cloud wallet.
To learn more about transferring your assets from your cloud wallet, see Huobi’s guide here.