• Huobi announced the closure of its Huobi Cloud Wallet service, citing strategic adjustments for the move.
• The cloud wallet will be officially decommissioned on May 13, 2023.
• Huobi Cloud Wallet allowed users to hold tokens without managing private keys.
Huobi Exchanges Pulls Plug on DeFi Multitoken Wallet
Huobi has announced that it will discontinue its Huobi Cloud Wallet platform in May 2023 due to “strategic and product adjustments”. Maintenance and upgrades of the multitoken wallet service will officially stop on Feb. 13 and users are encouraged to transfer cryptocurrency and nonfungible tokens (NFTs) to their main Huobi accounts or other wallet addresses. Users have three months left to transfer digital assets from their wallets as withdrawal and transfer functions will work until May 13, 2023 when the cloud wallet is officially decommissioned.
What is a Custodial Wallet?
A custodial wallet is a type of digital asset management service where private keys are kept in escrow by a third-party company such as Huobi Group instead of being managed by individuals themselves. This type of service was created with the intention of offering easier access to decentralized finance (DeFi) applications and services for users who may not feel comfortable handling their own private keys.
What Was Rebranded?
In May 2022, Huobi Wallet was rebranded as iToken following an $200 million investment from Huobi Group. This rebranding came after the launch of the original Huobi Cloud Wallet in October 2021 which provided users with a feature allowing them to manage digital assets without having to handle private keys themselves.
What Are The Benefits Of A Custodial Wallet?
Using a custodial wallet allows users access to various DeFi projects through token transfers between platforms while giving them peace of mind knowing that their private keys are held securely by a trusted third party. It also allows for seamless synchronization between exchanges like Huobi Global and its respective cloud wallet service so that users can easily store and manage their digital assets safely in one place.
Conclusion
In conclusion, although closing down its multi-token cloud wallet may be sad news for some loyal customers, this strategic adjustment has been made with user safety in mind so that they can still access DeFi projects while having peace of mind knowing their private keys are kept securely by a trusted third party provider like Huobi Group