Why Did A Dormant Address Extract $3.45 Million Worth of Ethereum (ETH) from Coin On?

03/28/2023 08:58 • Digital Disruptors • 90 views

According to reports, according to Lookonchain monitoring, an address that has been dormant for 2.5 years has extracted 2000 ETHs (approximately $3.45 million) from Coin On today. The address did not conduct any transactions after withdrawing 1 million USDCs from Coin On on September 2, 2020.

An address that has been dormant for 2.5 years extracts 2000 ETHs from Coin An, equivalent to approximately $3.45 million

In the world of cryptocurrency, transaction monitoring is critical to ensure the safety and security of investors’ funds. The blockchain technology that underpins cryptocurrencies enables transparent and traceable transactions. Recently, Lookonchain monitoring reported an unusual event in the cryptocurrency world. A dormant address extracted $3.45 million worth of Ethereum (ETH) from Coin On. This article explores the incident in detail and seeks to provide an understanding of what could have motivated the extraction.

What Happened?

According to Lookonchain monitoring, an address that had been inactive for 2.5 years suddenly extracted 2000 ETHs from Coin On. The extraction amounts to approximately $3.45 million. The address in question had not conducted any transactions after withdrawing 1 million USDCs from Coin On on September 2, 2020.

Possible Reasons for Extraction

Several reasons could motivate a dormant address to extract such a high amount from a cryptocurrency exchange. One possibility is a market manipulation attempt. A large withdrawal like this could trigger an emotional response among other investors, leading to panic selling of ETHs. This, in turn, could cause the cryptocurrency’s value to plummet. A market manipulator could then buy the coins back at a lower price, making a significant profit.
Secondly, the withdrawal could be due to a large investment. It could be that the owner of the address had been waiting for the right moment to buy a large amount of ETHs. A sudden increase or decrease in price could have triggered the owner to make the investment.
Finally, it could have been a transfer to another account. The owner of the address could have decided to move their funds to a more secure account, hence the large withdrawal.

How Did It Affect Coin On?

The sudden extraction of $3.45 million worth of ETHs from Coin On was significant, but it did not cause any severe disruptions to the platform’s operations. Despite being a relatively small cryptocurrency exchange, Coin On has stringent security measures that ensure investors’ funds are safe. The platform also has a system for monitoring and reporting any unusual events, making it easy to react to any issue that may arise.

Conclusion

The extraction of $3.45 million worth of ETHs from Coin On by a dormant address highlights the need for proper transaction monitoring in the cryptocurrency industry. The incident could be a market manipulation attempt, a large investment, or a transfer to a more secure account. It is vital for investors and cryptocurrency trading platforms to remain vigilant and report any unusual activity.

FAQs

1. What is a dormant address?
A dormant address is a cryptocurrency address that has not experienced any transactions for an extended period.
2. How does cryptocurrency transaction monitoring work?
Cryptocurrency transaction monitoring involves tracing the flow of digital assets from one address to another to ensure that there is no fraudulent or illegal activity.
3. Is Coin On a safe cryptocurrency exchange?
Yes. Coin On is a relatively small cryptocurrency exchange, but it has a robust security system that ensures investors’ funds are safe.

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