Magic Eden Redirects UTXOs to Coinbase
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The post Magic Eden Redirects UTXOs to Coinbase appeared first on Coinpedia Fintech News
Deezy founder Danny revealed on X that Magic Eden, Bitcoin’s largest NFT marketplace, is exploiting Coinbase by processing small transaction outputs. Magic Eden directs these tiny outputs, like 1000-2000 sats, to their Coinbase account instead of their own address. As a result, Coinbase combines these outputs and covers the associated fees, unaware of the exploitation. Danny’s discovery uncovers Magic Eden’s clever strategy to save fees while Coinbase unknowingly incurs additional costs. This unexpected move has sparked discussions on Twitter about the implications for large crypto exchanges.
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