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Huobi to Discontinue its Cloud Wallet Service by May 2023

According to the information provided by the crypto exchange, the multi-token wallet that supports decentralized financing (DeFi) will be discontinued on May 13th, 2023.

Image Credit: Bloomberg (1.1)

Huobi revealed (1) that its Cloud Wallet service would be permanently discontinued shortly owing to "strategic and product modifications." According to the information provided by the crypto currency exchange, the multi-token wallet that supports decentralized financing (DeFi) will be discontinued on May 13th, 2023.

The fact that a decommission date has been specified indicates that the functions of withdrawal and transfer on the Cloud Wallet will continue to operate for the following three months.

On the other hand, Huobi has announced that beginning today, February 13th, it will no longer do maintenance or upgrades on the Cloud Wallet service.

Do Not Move Funds into Huobi Cloud Wallet

In light of the impending shutdown, Huobi strongly advised its customers not to move any digital assets into their respective cloud wallets. Instead, the cryptocurrency exchange recommended that its users who were still utilizing the cloud wallet move their digital assets to their primary exchange accounts.

The business also noted that these assets, which include non-fungible tokens (NFTs) and crypto, may be transferred to other wallet addresses in addition to being able to be stored as crypto.

The Huobi Wallet has received various new features since it was rebranded as iToken in May last year, which followed an investment of $200 million from the Huobi Group.

These improvements were included before and after the rebranding, substantially improving the user experience and interaction between users. Huobi Cloud Wallet was introduced for the first time in October 2021 as a feature of the Huobi Wallet.

Users could begin managing their digital assets without using private keys once the cloud-based solution was made available.

When it was first released, the Huobi custodial wallet service aimed to make it simpler to gain access to the many decentralized applications and services. This cloud service depended on a third-party administration system to hold users' private keys in escrow, eliminating the need for users to manage their accounts directly.

Huobi's Cloud Wallet effort has allowed users to experience seamless synchronization with its features over the years it has been in business.

Token Delisting

In other recent developments on Huobi, the exchange removed 33 tokens at the beginning of the previous month. This delisting resulted from a decline in market share brought on by trading risks and a lack of activity.

Huobi had indicated at the time that the majority of the tokens violated several portions of its Token Management Rules, including the following:

1) [Tokens] that have a warning label that reads "ST" and has not been canceled during the first thirty days.
2) [Tokens] That do not fulfill the threshold of having a daily trading volume of at least $50,000."

Despite being a top crypto currency exchange worldwide, Huobi has seen a decline in its market share since 2020. The company's market share in 2020 dropped from 22% to a pitiful 4% during the previous year.

Huobi Visa Card Launch

In light of Huobi's diminishing market share, the company is expanding into additional non-linear crypto businesses to increase its profitability. For instance, in December of last year, the firm announced a cooperation with the global leader in payment processing, Visa.

In the context of this agreement, the launching and distribution of Huobi Visa cards will bridge the gap between traditional banking and the crypto currency ecosystem.

The Huobi Visa card is an effort to provide a gateway for user conversions from fiat currency to crypto currency that is more streamlined and effective. Additionally, the program raises awareness of crypto currency usage among Visa's large customer base, which comprises 3.3 billion individuals in 200 countries.