Magic Eden Suspected of Using Coinbase to Handle Small Outputs to Reduce Hassle and Save Integration Costs
PANews reported on May 20 that Danny, the founder of Deezy, stated on the X platform that he discovered Magic Eden was employing a "trick" on Coinbase. Magic Eden adds small outputs for market fees in each market purchase, with amounts ranging from 1,000 to 2,000 satoshis. Integrating these small transactions in the future will be troublesome and incur additional costs. Cleverly, Magic Eden did not use its own address to receive these UTXOs (unspent transaction outputs) but chose a Coinbase account address, causing these small deposits to go directly into Magic Eden's Coinbase account. Coinbase is responsible for the integration fees. However, due to its large scale and slow response, Coinbase was unaware of this and suffered significant losses during the integration process.
Additionally, Mempool founder Mononaut stated that in the past 24 blocks, Coinbase Prime integrated 92,400 small transaction inputs from Magic Eden's address, distributed across 308 transactions, at a price of approximately 7 sats/vb. These transactions paid a total fee of about 0.59 BTC to recover approximately 1.75 BTC.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Manta Foundation launches $50m ecosystem fund
Share link:In this post: Manta Foundation has announced a $50 million fund to accelerate growth in the Manta Network ecosystem. The EcoFund will prioritize projects that exhibit high growth potential. The initiative will span DeFi, DePin, NFTs, meme-coins, gaming, and ZK technology.Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consulta
Biden nominates CFTC Commissioners to top spots at FDIC and Treasury Department
Quick Take President Joe Biden tapped the CFTC’s Christy Goldsmith Romero to lead the Federal Deposit Insurance Corporation and Kristin Johnson to a top role at the Treasury Department. Both Democratic CFTC commissioners have pushed the agency to issue rules or guidance to protect consumers and address conflicts of interest in crypto. Commissioner Romero, up for a spot as FDIC chair, has warned of “contagion risk” in crypto markets, drawing comparisons to the industry and the financial crisis in 2008.
