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Magic Eden allegedly uses Coinbase to process small outputs for it to reduce hassle and save integration costs

Magic Eden allegedly uses Coinbase to process small outputs for it to reduce hassle and save integration costs

CointimeCointime2024/05/20 02:52
By:Cointime

Deezy founder Danny said on X platform that he discovered Magic Eden was using a "clever trick" on Coinbase. Magic Eden adds small outputs for market fees in every market purchase, with amounts as small as 1000 to 2000 satoshis. Integrating these small transactions in the future will cause trouble and require additional costs. What's clever is that Magic Eden didn't use its own address to receive these UTXOs (unspent transaction outputs), but instead chose the Coinbase account address, allowing these small deposits to go directly into Magic Eden's Coinbase account, for which Coinbase is responsible for integrating the fees. However, due to its large size and slow response, Coinbase was unaware of this and suffered heavy losses during the integration process.

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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.

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