Coinbase Report Reveals Massive Net Outflow of USDCs to Pulsechain Sacrifice Wallet

03/13/2023 21:24 • Crypto & Markets • 66 views

According to the report, Conor, the business director of Coinbase, tweeted that the largest net outflow of USDCs seen on the chain belonged to the Pulsechain Sacrifice wallet. At the weekend, they exchanged 155 million USDCs for 153.7 million DAIs. They should use MakerDAO’s PSM directly, and Pulsechain finally took on the sliding point of $1.4 million, which they don’t need to do.

Business director of Coinbase: Pulsechain Sacrifice wallet exchanged 155 million USDCs for 153.7 million DAIs

Analysis based on this information:

Coinbase, one of the leading cryptocurrency exchange platforms, has reported on a significant outflow of its USD Coin (USDC) from its exchange. According to Conor, the business director of Coinbase, the largest net outflow of USDCs was seen on the chain, primarily flowing to the Pulsechain Sacrifice wallet. This transaction occurred over the weekend, where a total of 155 million USDCs were exchanged for 153.7 million DAI, a stablecoin backed by MakerDAO.

While the transfer of USDCs to the Pulsechain Sacrifice wallet is not entirely new, the mentioned transaction was of a significant amount. Moreover, it was reported that the transaction took place outside of MakerDAO’s PSM (Protocol Specialized Module), a tool designed to execute large token trades without affecting their peg to the US dollar. It has sparked questions on why Pulsechain did not use PSM for the transaction, especially given its size.

Another point to note is that the transaction led to historical trading on the Pulsechain network, hitting a high point of $1.4 million. This is noteworthy, considering that the project is relatively new, having only been launched recently. Pulsechain is an Ethereum hard fork that aims to integrate low-fee transactions and a more energy-efficient way of mining. The Pulsechain Sacrifice wallet is where users burn their cryptocurrency in exchange for Pulsechain tokens in preparation for the network launch.

The move by the Pulsechain Sacrifice wallet to exchange for DAI is said to be strategic. The conversion would enable the wallet to acquire additional tokens for the upcoming launch, leading to speculation around Pulsechain’s plans for the future. However, the exchange from USDC to DAI outside of MakerDAO’s PSM has raised some concerns among industry experts regarding the stability and legitimacy of this activity.

In conclusion, Coinbase’s report on the massive net outflow of USDCs to the Pulsechain Sacrifice wallet highlights the need to monitor cryptocurrency transactions carefully. Coinbase’s report will support efforts towards investments and security measures to avoid fraudulent transactions. The issuance of stablecoins is expected to grow, and this has highlighted the need for regulations and policies governing their circulation.

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