Internal Secrets of Huobi Leaked

1.  Preface

Recently, an Excel workbook with the name “Huobi Mine Pool Node Account Data 20180911” was circulated in the EOS community. The data in the workbook is detailed and it seems that it was not produced by an external source. The author of the comments is Shi Feifei, an employee of Huobi. Therefore, it can be inferred that this workbook contains internal data accidentally leaked by Huobi.

The workbook contains four spreadsheets, namely, “mutual node voting”, “control node voting”, “node income statement”, and “ticket position and account situation”. The four detailed spreadsheets disclose inside information of the mutual voting between Huobi and other nodes, and control of other nodes to split the node income. Although EOSONE previously analyzed how Huobi achieved an income of RMB 1.7 million through seven standby nodes on one website as early as August 16, 2018, it is still shocking to see direct evidence in this new internal document.

2. Mutual Voting and Ticket Exchange, Benefit Sharing

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The table above contains mutual voting data summarized by Huobi from September 4, 2018 to September 10, 2018. It can be seen that:

1) In addition to the five nodes eoshuobipool, cryptokylin1, eosiosg11111, cochainworld, and eospaceioeos which are controlled by Huobi (detailed analysis below), Huobi voted on the remaining 20 nodes. Of the 20 nodes, 16 nodes participated in mutual voting with Huobi, and 4 nodes (that is, eosgenblockp, eosbeijingbp, eoseouldotio, eospacificbp, and eoslaomaocom) did not.

2) Huobi added votes to starteosiobp, eosflytomars, eoscannonchn, and other nodes. These nodes also increased the number of votes for Huobi. It can be said that the votes for Huobi were “paid off”.

3) The node atticlabeosb is the only one that voted for Huobi but did not get one in return.

3. Control Puppet Nodes to Earn Dividends Easily

In the previous EOSONE analysis on August 16, 2018, it was discovered that Huobi achieved an income of RMB 1.7 million by deploying seven standby nodes (namely, strongmonkey, greencapital, cochainworld, eoschaintech, eossixparkbp, eosorangeeos, and voldemorteos) on one website. The shEOS node proposed arbitration for these seven nodes on August 25, 2018 for the reason that they are not public, provide no website, no ownership information, and no node interaction. However, after one month, the arbitration request has not yet been responded to since the EOS Convention is still in discussion and such arbitrations require a convention as a basis for judgment.

Though the seven nodes above have not been formally arbitrated, Huobi seems to have abandoned the support for their “four non-nodes” in a simple and abrupt manner, and switched to support “normal” nodes in order to avoid being overly secretive. Most of these nodes have public websites, and some of them even have project-related information. The list of supported nodes and the distribution of income are as follows:

  1. eospace: the income of 170 EOS is owned by eospace, and the rest is owned by Huobi;
  2. cochain: the income of 150 EOS is owned by cochain, and the rest is owned by Huobi;
  3. eosiosg: one half of the income is owned by eosiosg, and the other half is owned by Huobi;
  4. cryptokylin1: No income temporarily.

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Using the above method, Huobi achieved an average income of 1,116 EOS every day for the period of September 5 to September 11. Based on a unit price of 5 US dollars per EOS, the daily average income of Huobi was 5,582 US dollars, equivalent to 38,348 RMB. EOS nodes can earn an average income of 1.15 million yuan per month. This income is calculated based on the situation where Huobi gives up support for the remaining “four non-nodes”, and one of the supported nodes has no EOS income temporarily. If Huobi increases the voting on these nodes, the income will be multiplied.

In addition to the income from EOS nodes, Huobi also has income from VET, TRX, and ONT nodes. As of September 9, 2018, the total income from VET nodes was 841,611 VTHO, equivalent to US$1,851; the total income of TRX nodes was was 2,342,235, equivalent to US$46,844; and the total income of ONT nodes was 86,373 ONG, equivalent to US$75,075.

In other words, as of September 9, 2018, the total income of the VET, TRX, and ONT nodes were US$123,770, totaling RMB 620,000!4751538411693_.pic_hd.jpg

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4. Huobi Watched Many Ticket Positions

Exposing the Voting Account of Nodes Unexpectedly

The ticket positions of nodes watched by Huobi are shown in the following table. Among them, Huobi focuses on starteosiobp, eoscannonchn, atticlabeosb, flytomars, EOSfish, and ZB, which are nodes that conduct mutual voting with Huobi.

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In addition, Huobi accidentally exposed their own voting accounts and the nodes they are concerned with. The details are as follows:4781538411904_.pic_hd.jpg

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5. Conclusion

In conclusion, it is common for a node to exchange tickets with other nodes and support standby nodes. But it is important that his particular case is dealt with effectively and with urgency. In this bear market, EOSONE hopes that everyone can brainstorm and contribute ideas to quickly fill in the blanks of EOS governance, and help promote the healthy and orderly development of the EOS ecosystem.

 

Source: EOSONE Super Observation

 

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