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Huobi Calls Out DeFiLlama for Spreading Inaccurate Data on Outflows

Published August 10, 2023 12:59 PM
Teuta Franjkovic
Published August 10, 2023 12:59 PM
Key Takeaways
  • Huobi allegedly saw US$105 million outflow amid insolvency rumors
  • The company responds there is no “huge outflow” and that data source from DeFilLama is inaccurate
  • Huobi received $200M USDT, $9M Ether from a whale, denies it’s Justin Sun

Amid fears of police investigating top Huobi execs, there have been substantial outflows from the exchange. However, the data and figures on the outflows are coming in with different numbers, and Huobi says a lot of it is inaccurate.

Huobi’s alleged troubles began last week when a claim from anonymous sources  in Hong Kong stated that several of the company’s leaders had been detained by the Chinese police and were being investigated.

However, a Huobi spokesperson told CCN: “in regards to the recent China arrest FUD, all original sources of misinformation have been contacted to remove and correct. Huobi expressively reserves the right to take legal actions against platforms or individuals with acute intents to mislead or defame”.

Also, Huobi’s head of social media, Xie Jiayin, dismissed the news on Twitter , saying the false rumor had been debunked and Huobi was prospering.

As for the outflows of capital that led many to believe the exchange was on the brink of insolvency, Huobi has put it down to incorrect data.

Huobi Acuses DeFiLlama of Being ‘Inaccurate’ 

There is an obvious discrepancy regarding the data being shown between Nansen and DeFiLlama for Huobi for all that matters.

Huobi stated  that “at present, except for Nansen and DeFiLlama, all major data websites are missing addresses and assets. For example, the data platforms did not fully display our recently added and updated addresses before, nor did they display stUSDT.”

However, in its email to CCN, Huobi said: “In regards to the alleged fund outflow, there is no “huge outflow,” data source from DeFiLlama is inaccurate, please check out Nansen, which has the most updated and accurate real-time data, the relevant team is working with DeFiLlama to update their data tracking, feel free to reach out to Nansen as well, they can help you understand the data.

According to the DeFiLlama  graph below, there is a visible reduction in USDT tokens through July, hitting a low point on August 7. Huobi refutes this data and recommends using Nansen. .”

Huge inflow to Huobi
The graph shows the outflow of USDT tokens through July and into August. While it is also worth noting the sudden inflow spike of USDT on August 8. Credit: DeFiLlama

However,  Nansen’s data paints a different picture – USDT on August 7 was recorded at $22.5 million (compared with over $100 million on DeFiLama), and there is no notable fall in the volume of this asset.

Primarily, the reason for this may rest in what is publically available on Nansen. Nansen states above its data, “Note: This dashboard is in beta and only includes balances and activity on Ethereum.”

No fall in USDT
Nansen shows a much smaller portfolio of USDT on Huobi at the time of the alleged outflows, with no notable drop. However, this may be because it is only monitoring Ethereum tokens. Credit: Nansen

Nansen Still Shows Outflows

Despite Huobi discrediting DeFiLama’s data and pointing CCN to Nansen, On August 7, Nansen Tweeted  that there were indeed outflows:

According to Nansen , recommended by Huobi, as of 4:30 p.m. HKT time, Huobi recorded an outflow of $505.9 million worth of tokens during the previous week with an influx of $432.5 million, resulting in a net outflow of about $73.3 million.

The outflows seem to be speeding up. As per the Nansen statistics, Huobi had a net outflow of $32.9 million during the previous 24 hours. Over the last seven days, stablecoin balances on the exchange decreased 33% to $99.47 million.

New Money Coming In?

Since the alleged outflows, there has been on-chain data showing that a whale made two large deposits into Huobi, boosting the exchange’s holdings of USDT and Ether.

The whale made the first transfer of $200 million  USDT on Tuesday morning Asia time and, according to Huobi, this was not Justin Sun’s address as many speculated. However, the address is tagged as one of the top-10 holders of TRX token .

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