HECO Network prepares for closure

A recent announcement marked a significant milestone in the world of blockchains: the HECO Network (Huobi Eco Chain), the Layer 1 blockchain launched by the exchange Huobi (now HTX), will officially cease operations on January 15, 2025. 

The closure of the network represents the end of an era for one of the most well-known blockchain projects, designed to offer fast and low-cost transactions in the decentralized finance (DeFi) sector.

The history of the HECO Network

The HECO Network was launched by Huobi to compete with other Layer 1 blockchains like Ethereum and Binance Smart Chain, offering a scalable, cost-effective, and accessible platform. 

Designed primarily for decentralized applications (dApp) and DeFi services, the network has stood out for its high performance, attracting developers and investors thanks to significantly lower transaction costs and fast processing times.

Over the years, the HECO Network has supported a variety of HRC20 digital assets, including HRC20ETH, HRC20TUSD, and HRC20LINK, allowing users to interact with a diverse ecosystem of blockchain projects. 

However, despite its initial success, the project began to lose momentum due to increasing competition and internal strategic changes by HTX.

With the closing date set for January 15, 2025, HTX has announced that users of the HECO Network will need to take specific actions to safeguard their assets. 

All HRC20 tokens, including HRC20ETH, HRC20TUSD, HRC20LINK, and others, must be migrated or converted before the final shutdown of the blockchain.

Detailed instructions will be provided by HTX in the coming weeks, but it is crucial that users act promptly to avoid the loss of funds. The closure of a blockchain involves the cessation of node operations and technical support, making funds that are not managed in time inaccessible.

The impact on the community and the sector

The closure of the HECO Network represents a significant change for the crypto community, particularly for developers and users who relied on this network for low-cost transactions and innovative projects. The decision to retire the blockchain comes at a time when Layer 1 blockchains are facing fierce competition from more advanced and scalable alternatives, such as Solana, Avalanche, and Ethereum’s Layer 2 solutions.

Despite the negative impact for some users, the closure of the HECO Network also offers an opportunity to migrate to more modern networks, with more active and continuously growing ecosystems.

If you are a user of the HECO Network with HRC20 assets, here are some actions you can take to protect your funds:

1. Follow the official updates: HTX will release detailed information on the migration process. Make sure to check the official announcements to receive precise instructions.
2. Transfer the assets to compatible wallets: explore options to migrate your funds to other compatible blockchains or secure wallets.
3. Avoid scams: the closure of a blockchain can attract malicious individuals. Be cautious of unofficial sites and services that promise to assist you in the migration.

The future of blockchain technology

The retirement of the HECO Network highlights the sustainability challenges that many Layer 1 blockchains face in a rapidly evolving ecosystem. Competition pushes projects to constantly innovate to remain relevant, and not all networks manage to keep up.

However, the closure of HECO is not necessarily a negative sign for the blockchain industry. Rather, it represents an example of how the sector is consolidating, shifting resources towards more advanced and sustainable solutions.

The closure of the HECO Network on January 15, 2025, marks the end of a project that has significantly contributed to the spread of DeFi and dApps. Although the transition may pose a challenge for users, it also offers the opportunity to explore new blockchain ecosystems. 

Users are invited to take the necessary measures to protect their assets and adapt to the ongoing change.