Huma Responds to HUMA Price Volatility: Hack of Early LP Wallet Triggered Selloff, Foundation Did Not Sell

November 12: Huma Finance co-founder Richard Liu posted a response to HUMA's recent sharp price volatility. He said that although the team anticipated volatility ahead of the November unlock, the magnitude still exceeded expectations. An investigation found that on October 22, an early liquidity provider's wallet was hacked, leading to about 12 million airdropped HUMA being sold into the market. The project team has questioned the market makers it has engaged, and there is currently no reason to believe there was malicious manipulation. In addition, between November 2 and 7, open interest across platforms rose from about 620 million tokens to 1.1 billion tokens, funding rates have been negative since November 4, perpetual contract volume reached 7 to 10 times that of spot, and market activity appears to be concentrated in derivatives.

The Huma Foundation stated that over the past 3 months, the Foundation and its affiliated entities have not conducted any HUMA transactions, and have no plans to sell tokens during the upcoming unlock window. The Foundation has provided DEX liquidity for HUMA since TGE and has not changed its setup over the past year, and it has a clear policy that employees must not actively trade HUMA.