On-chain data analytics platforms - CryptoQuant and Glassnode - have been tied up in a ferocious debate about the former’s data legitimacy, which may or may not have led to a drop in Bitcoin price.
Even renowned analyst Willy Woo has joined in to sound off on the debate.
To Gemini or Not To Gemini
It all started when a Twitter user going by Ziggy Murphy, asked CryptoQuant CEO Ki Young Ju if a particular alert by the company was legitimate or not. The alert stated that Gemini had aggregated inflows of 18,961 BTC. Gemini is one of the biggest exchanges in the world.
Ki Young Ju replied to the tweet:
“This 18k $BTC deposit is legit as it was a transaction between user deposit wallets and Gemini hot wallet. All Exchanges Inflow Mean is skyrocketed due to this deposit. Don't overleverage if you're in a long position…..WhaleAlert labels Gemini as Coinbase, Glassnode & Bitinfochart labeled Gemini as OKEx. This is because data providers have different clustering algorithms. What's clear is that it's not an internal transfer, and it went to an exchange user deposit wallet.”
Ki Young Ju later added that Glassnode made an error since they mislabel Gemini as OKEx.
Glassnode and CryptoQuant Argue About Inflows
Glassnode took to Twitter to clarify that they have received messages about massive inflow into Gemini. However, the funds were simply transferred internally.
“We have been receiving messages asking about large #BTC inflows into Gemini. Clarification: This is incorrect, the reported transactions were internal. Those are funds that were already on the exchange's wallets, and were simply transferred internally.”
CryptoQuant then replied to the tweet, demanding to see the proof of their claim. They then put up a series of images to prove that the funds' source wasn’t Gemini since they don’t use “P2SH addresses for user deposits wallets which prefix starts with '3'. It is supposed to start with 'bc1' or '1'.”
CryptoQuant then concluded that there are three possibilities:
- Whale deposited BTC into Gemini user wallet
- Gemini topped up its liquidity from other exchanges.
- OTC deals.
Willy Woo Joins The Fray
Renowned analyst Willy Woo then joined in the argument by calling CryptoQuant’s claims “bogus.”
“Markets selling off due to bogus data saying $1b of BTC flowing into Gemini. It's the 2nd time it's happened in the last 30 days.”
Ki Young Ju called Woo’s claims "heartbreaking" and remained steadfast on his company’s conclusions:
“My hero @woonomic said our data is bogus, and it breaks my heart. @glassnode still didn't respond to our rebuttal after 12 hours. Data Interpretation could be infinite, but the data must be accurate as one answer. It was not an internal transfer, but Gemini inflows.”
Willy Woo’s Analysis
Willy Woo then went on a tweetstorm talking about how CryptoQuant’s alleged error led to the massive dumping of Bitcoin price.
“The @cryptoquant_com "data error" debate. Did a whale send in 18k of BTC into Gemini to dump the markets? Or was it a data error? This alert was sent out to 28,300 traders warning of whale dumping. Speculators sold off minutes later.”
Woo then noted that the price of Bitcoin on Gemini didn’t drop relative to others, which indicates that the dumping didn’t take place there. Plus, if an OTC desk filed the order, it would be bullish due to $1 billion of price validation. Also, corresponding flows would have gone out to buyers on other desks/exchanges from the OTC order, which wasn't the case.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.