The Instagram soap opera continues just hours after a report was released by AppData claiming a drop of 25 percent in the amount of users actively using the service after it announced changes to its Terms of Service that would sell its users’ photos without compensating them. The Instagram ToS news was changed days after its announcement, and once again, Instagram is performing damage control as best it can with today’s report.

Not only is Instagram denying today’s report from AppData, but it’s reporting growth in its daily users.

“This data is inaccurate,” an Instagram spokeswoman told us. “We continue to see strong and steady growth in both registered and active users of Instagram.”

Instagram may have a point as their ToS fiasco took place on December 18th, which AppData reports an increase in the service’s daily active users. Another concern is AppData’s report only accounts for users who log into the service with their Facebook account and doesn’t track users who only log in with their email address. Until either AppData or Instagram comes forward with a full report of just how many, if any, users stopped using Instagram after the ToS fiasco, then we’ll never know just how unpopular it has become.

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