Huobi’s Heco Chain, a decentralised blockchain launched by the Huobi Exchange, has announced its closure. Users are required to redeem their HRC20 assets by January 10, 2025. The closure marks the end of an era for the blockchain, which once supported key DeFi projects like LendHub and MDEX.
What was Heco Chain?
The Heco Chain, introduced as a cost-effective alternative to Ethereum, gained popularity for its low transaction fees and compatibility with Ethereum-based smart contracts.
Over the years, it fostered innovation in DeFi through developer-friendly tools and seamless cross-chain interoperability. Despite its success, retiring the network signifies a turning point in the blockchain ecosystem.
Redemption Process Outlined
Heco has provided detailed guidelines for users to redeem their HRC20 assets. Holders must deposit their assets into a designated “redemption address” listed on HecoDAO’s official website by January 10, 2025. The assets will then become points which is based on their value as of November 10, 2024. For every 1 USDT equivalent of assets, users will receive 1 point.
Following the deposit deadline, the accumulated points will be exchanged for $HTX tokens. Each point is valued at up to 200,000 $HTX. The distribution of these tokens is set to begin on January 15, 2025, and will occur in 12 monthly installments. To complete the redemption process, users are required to provide their TRON addresses.
Security Concerns and Justin Sun’s Role
The decision to retire Heco Chain also follows previous security challenges. HTX, formerly known as Huobi, and Heco Chain itself were targeted by hackers in significant exploits last year. CNBC reported that these breaches, linked to Justin Sun’s projects, resulted in an estimated loss of $115 million.
Justin Sun, a prominent investor in HTX and a figure associated with Heco Chain, acknowledged these security incidents. Despite these setbacks, Sun and his ventures remain influential in the blockchain space.
A Legacy of Innovation
Heco’s shutdown reflects a broader evolution within the decentralized finance sector. Originally launched as a competitor to Ethereum, the chain offered affordable, scalable solutions for developers and users alike. Its ecosystem included major projects such as LendHub, a protocol for credit and debit with mining solutions. These platforms played a significant role in shaping the DeFi landscape.
The end of Heco’s operations underscores shifting priorities in the blockchain world, where new technologies and platforms are constantly emerging. As the decentralized finance sector grows, the retirement of older networks like Heco highlights the dynamic and ever-changing nature of the industry.