July 13, 2023 – Singapore, Singapore
Huobi says ungrounded allegations are spreading on social media regarding a ‘decline in assets’ at global major exchange.
To prevent panic among users, Huobi says it’s releasing a necessary response based on data and facts.
On July 1, 2023, the crypto exchange published its Merkle Tree-based proof of reserves for July, which it says confirms that 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Claims stem from outdated data on third-party platform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 unsubstantiated claims about asset decline, says Huobi.
In response, the exchange made the following statements.
Those influencers’ claims are based on asset data provided by Glassnode.
However, Huobi says the data obtained by Glassnode is inaccurate, citing “evident gaps and omissions” in addresses.
Huobi says this is due to the following reasons.
- Huobi’s major cold and hot wallet addresses used for asset storage have been changed since the completion of a share transfer on October 8, 2022.
- Huobi’s assets are distributed across multiple chains, including 400 million USDT on TRON, 6,500 TRC20 BTC and a portion of ETH used as collateral for ETH validators. However, Glassnode failed to promptly update relevant data based on this information and changes.
Huobi says it has established contact with Glassnode and requested the necessary data updates, and has also voluntarily disclosed its major addresses since the end of November 2022.
Following the collaboration with Nansen, a blockchain analytics platform, Huobi says it has provided Nansen with the relevant addresses.
Furthermore, Huobi says all address changes whether resulting from the replacement of major shareholders or due to system upgrades have been synchronized with Nansen.
The Huobi assets details displayed on Nansen can be found publicly here.
In reality, this steep decline is not caused by any changes in the platform security or user trust, says Huobi.
According to the exchange, it can be attributed to Huobi’s withdrawal from certain markets.
Therefore, Huobi says it is important to understand that both the fluctuations in user base and assets are within the realm of normalcy.
Since the beginning of 2023, Huobi says it has maintained a stable and upward momentumwithout experiencing any significant changes.
Pursuit of asset transparency by upholding highest industry standards in safeguarding user assets: Huobi
As a prominent digital asset exchange, Huobi says it prioritizes its users and considers the protection of user funds as its primary responsibility.
The exchange says Huobi’s on-chain wallet assets are publicly transparent, and users can verify at any time that their funds have a one-to-one backing of real assets.
Starting in 2023, Huobi says it now updates the Merkle Tree-based proof of reserves every month and publishes it to the public.
Currently, Huobi says its on-chain assets ensure permanent 100% redeemability for user assets.
According to Huobi, users can view Huobi reserves of BTC, ETH, BETH, TRX, USDT and HT in detail on the asset audit page of Huobi’s official website, including reserve ratio, Huobi wallet’s assets and Huobi’s user assets.
The specific asset proof of reserves can be viewed here.
The assets applicable for proof of reserves are BTC, ETH, BETH, USDT, TRX and HT.
Huobi says it’s current reserve ratios are as follows.
- USDT 100%
- BTC 101%
- ETH / BETH 103%
- HT 103%
- TRX 103%
In the future, Huobi says it will continue to publish Merkle Tree proof of reserves to the public and put users first with professional and reliable digital asset trading services in line with high industry standards.
Founded in 2013, Huobi has evolved from a crypto exchange into a comprehensive ecosystem of blockchain businesses that span digital asset trading, financial derivatives, wallets, research, investment, incubation and other areas.
Huobi serves millions of users worldwide, with a business presence covering over 160 countries and regions across five continents.
Its three development strategiesglobal development, technology drives development and technology for good underpin its commitment to providing comprehensive services and values to global cryptocurrency enthusiasts.
Michael Wang, Huobi