Huobi Ends Support for Cloud Wallet Amid Distress Signs

Huobi Halts Cloud Wallet Support

Huobi has unexpectedly ceased support for its cloud wallet solution, iToken. Users are given a three-month window to withdraw their funds. This decision follows a series of troubling developments for the crypto exchange, including mass layoffs and underperformance.

Strategic Adjustments Cited

The wallet, rebranded as iToken in 2022, allowed users to manage funds across 20 blockchain networks without needing private keys. Despite this functionality, Huobi has attributed the termination to "strategic and product adjustments." Notably, no announcements were made on iToken or Huobi's official communication channels.

User Guidance and Timeline

Huobi advises users to transfer their tokens back to their Huobi balance or withdraw them using self-custodial wallets compatible with the supported blockchains. The cloud wallet will remain operational until May 13, 2023, after which it will be officially offline.

Broader Implications

The abrupt end of the cloud wallet service is part of a broader pattern of instability at Huobi. In January, Justin Sun, who plays an advisory role, announced a 20% workforce reduction following increased fund outflows. This situation raises concerns not only for Huobi but also for the wider Tron ecosystem, potentially affecting the Huobi token's value.

Recent Developments

Despite these challenges, Huobi recently listed the FTX Users’ Debt (FUD) token, a Tron-based asset unrelated to the bankrupt exchange FTX. This move has sparked debates within the crypto community regarding its implications.

Overall, Huobi's recent decisions and layoffs suggest financial struggles that could impact its operations and the broader cryptocurrency landscape.