Strange pattern polkadot and Coinbase

Tech Talk
1

I’m investigating an interesting transaction pattern on the address
12k6zoi7L6Jd2oCVek7Zktj8CHY2yoY6nxZThDZK7mdWP6Sr.

This is a Coinbase exchange address. It receives thousands of incoming transactions from accounts labeled as Coinbase user wallets on Subscan, and sends thousands of outgoing transactions to addresses labeled as Kraken, Binance, KuCoin, and Coinbase.

Anyone has any idea which pattern is this? Is this an internal service or a management layer between exchanges internally?

In other words, why would Coinbase send DOTs to addresses on other exchanges like Binance, KuCoin, Kraken .. etc

2

Over-the-Counter markets? I’m not saying that’s the reason, but it could be one reason, for sure.

1 Like
3

yeah I discovered those early too. My guess was always this is either a settlement layer when users are sending tokens to other exchanges; or it is a liquidity mechanism to share liquidity. But I would tend to assume the first.