According to Deezy founder Danny, Magic Eden, Bitcoin's largest NFT trading market, is using Coinbase to help it process small outputs. Every transaction in Magic Eden includes a small output as a market fee. These outputs are small, but they are troublesome to integrate. Instead of using their own address to receive utxos, Magic Eden used their Coinbase account, and all these market fees were deposited into Magic Eden's Coinbase account, so Coinbase will pay the cost of integrating these outputs. Mempool founder Mononaut said that in the past 24 blocks, Coinbase integrated 92,400 small outputs from Magic Eden at 7sats/vb, involving 308 transactions, and ultimately paid a fee of 0.59 BTC to recover 1.75 BTC. Danny believes that Coinbase did not know what was going on, so it was not very smart in integration and lost a lot of money. #MagicEden
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