Huobi Launches a Battle to Safeguard Users' Asset Security

January 19, 2023 at 06:49 AM EST

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Recently, rumors of Huobi's layoffs have been circulating on social media platforms. Although the accounts do not add up and there has been no official confirmation, it still raises concerns about the safety of users' funds. Some users even transferred their assets out of Huobi. Similar to what happened to the FTX in November 2022, the crackdown on centralized exchanges is still happening and coming with a vengeance. As one of the three major exchanges in the past, everyone's attention is on Huobi's ability to alleviate the liquidity crisis and demonstrate its security and risk control capabilities.

According to Nansen, Huobi saw net outflows of $60.9 million in 24 hours and $94.2 million in a week as fear among users is on the rise. However, on the afternoon of January 6, Huobi experienced a significant return of funds with inflows of over $100 million, reversing days of net fund outflows.

After events like the collapse of Terra and 3AC in 2022, the fear of crypto users comes not only from concerns over crypto platforms, but also from the confidence blow caused by hacker attacks. In 2022 alone, there had been 300 attacks of various types on the cryptocurrency industry that caused at least $3.6 billion in losses, including Binance's loss of $80 million in an attack on January 27. Binance also lost $100 million on October 7 due to a hack on its Binance Smart Chain. Other well-known exchanges or public blockchains, such as Crypto.com and Solana, also suffered varying degrees of losses.

A closer examination of major crypto exchange hacks in 2022 revealed that Huobi has not suffered any attacks, be they publically announced or detected by a third party.

Justin Sun, a member of Huobi's global advisory board, also said via his personal Twitter account that Huobi has operated safely for ten years without any security breaches. This is no small achievement in an industry where cyber attacks and hacking are commonplace. As a leading trading platform with ten years of operating experience, Huobi has a proven team of security experts, which guarantees the absolute safety of its users' assets.

Rumors about the security of Huobi users' assets first surfaced on social media platforms, with someone in the crypto industry suggesting that a retrenched employee may plant Trojan horses in Huobi's source codes or create security black holes. However, from general industry experience and the performance of Huobi during its 10 years of operation, it is unlikely that a single employee will cause security problems to the entire platform. According to insiders, Huobi has a strict risk control system and a safety management team. The users behind the rumors on social media are clearly uninformed of the actual situation.

From what we found out, Huobi has strong basic security capabilities. Its security infrastructure is hosted on a reputable cloud server and has a disaster recovery capability with a high fault tolerance. Not reliant on any centralized party, Huobi's core business data and technical architecture are capable of self-running and protected by strong security capabilities. So far, it has maintained 100% functionality and has the best security record in the crypto industry with no security incidents for the past ten years. The security of Huobi users' assets is always guaranteed.

Huobi, which completed its brand upgrade in November last year, received attention from all sides. Despite the decline in trading volume in all major exchanges and the occurrence of black swan incidents, such as FTX, which affected the confidence of users in centralized exchanges, Huobi still managed to achieve rapid growth. According to publically available data, Huobi's average daily growth of newly registered users and total asset inflows exceeds its peak in 2022. Coins like PI and BONK have increased by 1,000x since their launch on Huobi and their trading volumes are ranked first in the industry, which have become hot topics in the crypto industry.

At the same time, Huobi has seen impressive numbers in terms of daily and monthly new users, with more than 390,000 new users signing up per month.

The concerns over Huobi's asset security were triggered by the rumor of Huobi laying off 40% of its staff. However, according to Huobi's official response on the afternoon of January 6, Huobi will only lay off 20% of its staff and the plan has not yet been implemented. Employees' rights and interests will be protected in accordance with local regulations and policies.

About Huobi Group

As a world-leading company in the blockchain industry, Huobi Group was founded in 2013 with a mission to make breakthroughs in core blockchain technology and integration blockchain technology with other industries. Huobi Group has expanded into public blockchains, digital assets trading, wallets, mining pools, proprietary investments, incubation, digital asset research, and more. Huobi Group has established a global digital economy industry ecosystem by investing in over 60 upstream and downstream companies in the blockchain industry.