The leading cryptocurrency exchange Huobi is integrating its price data with Chainlink’s ecosystem in an attempt to enhance its own data integrity and offer more accurate price information.
While Binance was the primary major exchange to offer their data to Chainlink oracles earlier in the month of October last year, Huobi has gone one step further by running its own node on the system via Huobi Wallet. This enables the exchange to sign its own price data allowing users to verify that any exchange data coming from the Huobi Node is authentic and direct from the source.
Huobi Wallet CEO Will Huang stated:
“DeFi offers a singular unique value proposition of providing financial products which are transparent, open, and programmable. We are very excited to accelerate our involvement within this emerging trend by offering Chainlink users access to Huobi Global exchange data, also as running our own Chainlink Node.”
Concerns Over Volume Inflation
Huobi seems to be on a mission to enhance its credibility following concerns around volume inflation last year. By running a node, the exchange’s reputation is going to be on the line should any of the info shared via Chainlink convince be inaccurate.
As one of Gibraltar’s renowned cryptocurrency firms, the collaboration comes within the wake of the country’s continued efforts in reducing market manipulation by cryptocurrency firms over the previous couple of months. Last year Huobi collaborated with Global Digital Finance (GDF), co-chairing the Market Integrity Working Group with Solidus Labs.
Cryptocurrency Market Manipulation
Earlier in 2019 a Bitwise report implied that Huobi was reporting inflated trading volume, causing some indoor investigation to comb out any potential laundering trading strategies by the market makers.
Though, Huobi Global CEO Livio Weng admitted wash trading may have occurred:
“We did identify a couple of of our market makers conducting what we suspect may are wash trading for the sake of performance and marketing purposes. we’ve already communicated with these market makers and that they have discontinued the strategies in question.”
Huobi has since shifted to the top 10 exchanges within Messari’s ‘Real Volume’ list.