Magic Eden is suspected of using Coinbase to handle its small outputs to reduce hassle and save integration costs
ChainCatcher news, Deezy founder danny stated on the X platform that he discovered Magic Eden has been using a "clever trick" on Coinbase. Magic Eden adds small outputs for market fees in every market purchase, with amounts not large, such as 1000 to 2000 sats. Integrating these small transactions in the future will cause trouble and incur additional costs. Cleverly, Magic Eden did not use its own address to receive these UTXOs (unspent transaction outputs), but chose the Coinbase account address, allowing these small deposits to go directly into Magic Eden's Coinbase account, with Coinbase responsible for consolidating the fees. However, Coinbase, due to its large scale and slow response, is completely unaware of this, resulting in significant losses during the consolidation process.In addition, Mempool founder mononaut stated that in the past 24 blocks, Coinbase Prime consolidated 92,400 small transaction inputs from Magic Eden's address, spread across 308 transactions, at a price of about 7 sats/vb. These transactions paid a total of approximately 0.59 BTC in fees to recover about 1.75 BTC.