The closure of the Huione Guarantee platform, known as a major cryptocurrency market in the darknet, has triggered an active migration of users and merchants to competing Telegram platforms.
User and Merchant Migration
According to a new report by analytics company Elliptic, around 30 alternative platforms on Telegram have started accepting Huione Guarantee users. This occurred after the platform was shut down due to law enforcement actions related to money laundering. Consumers trading mainly in stolen data and illegal goods quickly sought replacements, which facilitated the growth of new markets.
Tudou Guarantee's Position Amid Shutdown
Tudou Guarantee found itself in a favorable position as a result of Huione's closure. The company quickly doubled its user base and now processes cryptocurrency volumes comparable to Huione's peak before its shutdown in May. Elliptic identified Tudou as the 'primary winner' of the migration, noting that it absorbed a significant portion of the previous player’s traffic and transactions.
Status of Huione's Crypto Activity
Despite some analysts claiming that Huione-related activity did not diminish after the shutdown, Elliptic clarified that this may stem from confusion between Huione Guarantee and other subsidiaries of the Huione Group. A deep blockchain analysis revealed that Huione Guarantee's transaction activity, particularly involving Tether, fell to negligible levels by the end of May.
The closure of Huione Guarantee has significantly impacted the darknet market, opening new opportunities for competitors. While Tudou Guarantee and other Telegram markets are gaining popularity, Elliptic warns of the need for broader measures to curb the influence of such platforms.
