• Huobi has released a statement on the “unsubstantiated” claims of asset decline at their exchange, citing an analysis of their Merkle Tree-based proof of reserves that show total assets in custody exceeding $3 billion.
• The allegations stem from outdated data provided by Glassnode which failed to update relevant data due to address changes and other reasons.
• Huobi has taken steps to collaborate with Nansen for address updates and voluntary disclosure of major addresses, reassuring users that the fluctuations in user base and assets are within normalcy.
Huobi Reassures Users After Unsubstantiated Claims Of Asset Decline
July 13, 2023 – Singapore, Singapore
Huobi has released a response based on data and facts regarding unsubstantiated allegations of asset decline at their global major exchange. According to a Merkle Tree-based proof of reserves published July 1, 2023, the total assets the platform holds in custody for users exceed $3 billion.
Claims Stem From Outdated Data On Third-Party Platform
Since July 6, some social media influencers have posted claims about ‘asset decline’ which have been attributed to outdated data provided by Glassnode. This is due to the fact that Huobi’s major cold and hot wallet addresses used for asset storage had been changed since October 8th 2022 when they completed a share transfer as well as having assets distributed across multiple chains such as 400 million USDT on TRON and TRC20 BTC. However, Glassnode failed to promptly update relevant data based on this information leaving gaps in addresses.
Collaboration With Nansen For Address Updates And Disclosure Of Major Addresses
Huobi has established contact with Glassnode requesting necessary data updates as well as voluntarily disclosing their major addresses since late November 2022. Following collaboration with Nansen – a blockchain analytics platform – Huobi has provided them with relevant addresses which can be found here.
Reassurance That Fluctuations In User Base & Assets Are Normalcy
Huobi reassures users that any changes in platform security or user trust is not causing this steep decline but rather it is attributed to Huobi’s withdrawal from certain markets; emphasizing that both the fluctuations in user base and assets are within the realm of normalcy. Since January 2023 they have maintained a consistent level of security protocols & risk management systems while investing heavily into their financial services & digital asset products offerings.
Conclusion
In conclusion, despite claims circulating on social media regarding ‘declines in assets’ at Huobi Global Exchange; its Merkle Tree-based proof of reserves shows total assets held in custody for users exceeding $3 billion while all address changes whether resulting from replacement of major shareholders or system upgrades have been synchronized with Nansen’s platform publicly available here: Nansen Addresses..
