Huobi Global broadcasted the termination of its NFT marketplace on May 13th this year due to a tactical reformation on its Huobi Cloud Wallet.
NFT marketplace faces closure
Huobi Global announced to its users and customers a decision to close down its NFT marketplace starting May 13. The decision caught its users, who had seen the company as a probable challenger in the growing NFT space. The announcement specified that the closure comes from its advancement to maintain its multi-token wallet.
The crypto exchange informed customers utilizing the Huobi cloud wallets in storing and transacting NFTs to relocate them to other wallets or put them in the main Huobi accounts. Huobi Cloud Wallet will continue operating for the remaining period till the deactivation date. However, users are advised not to transfer digital assets to the cloud wallet.
The rise and fall of the Huobi NFT marketplace
The NFT marketplace by Huobi enables users to hold, purchase, and sell digital assets, including collectibles and pieces of art. Since its inception in 2020, the Huobi NFT marketplace has become a crucial contributor to the NFT world. It had started to show its prowess in competing with trailblazers in the same market.
The company took a significant turn in May 2022 after its Huobi Wallet changed to iToken following a pump of $200 million by the Huobi Group. Previously, in October 2021, the company unveiled Huobi Cloud Wallet to enable customers to operate NFTs devoid of private keys. The wallet could create a smooth way of interacting with DeFi apps.
Huobi Cloud Wallet allows users to utilize a third-party system to place private keys in escrow. Users had a total reach to many decentralized finance ventures and an easy way of transferring and storing tokens through the cloud wallet.
Tough times for Huobi
Justin Sun, who propelled the exchange with $100 million in liquidity due to fluctuations, advised users not to worry. However, on March 9, the exchange witnessed a suspicious token pump and dump. In addition, the company already delisted 33 tokens from its platforms on claims of violations.
Conversely, recent months have become difficult for the Huobi NFT marketplace to navigate as most tokens record a downward trend. Several members of the crypto community are already calling Huobi to be the next big exchange to go down under, but so far, it seems to be pure speculation.