KuCoin burned a huge amount of Ethereum for mysterious reasons
KuCoin burned a huge amount of Ethereum for mysterious reasons
Last September, the KuCoin cryptocurrency exchange conducted a series of Ethereum (ETH) transactions worth tens of millions of dollars to an Ethereum burn address. However, the event went largely unnoticed until a certain time, but caused confusion when it became public.
Most interestingly, the Ethereum address, also known as the null address, is essentially a black hole in the blockchain universe, and tokens sent through it are never received. This removes them from circulation.
The event has raised many questions, but the reasons for this decision are still unclear, as there is currently no information available, according to the Crypto News portal.
Transactions to the 'null' address were made over three days, starting on September 7, 2021, and included more than 3,500 USDT (Tether) and ETH transfers.
Some experts believe that the KuCoin exchange made an agreement with Bitfinex, the company behind Tether, to redeem USDT, but this does not explain why ETH was also sent to the above address.
There is also a theory that there was a system glitch or error in the automated process that caused such an unusual movement of assets.
We have previously reported that 72% of Ethereum's liquidity is in the hands of five exchanges.
