Mysterious Surge in Tether-to-DAI Swaps Raises Eyebrows: What’s the Motive? – Coinpedia Fintech News


Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Adam Cochran exposes a puzzling address swapping USDT to DAI, funded by Binance and linked to ETH source.
Address switches from USDT to DAI conversion, sparking speculation about its intentions.
Unconventional transactions and phishing attacks deepen the mystery surrounding the activities.
Renowned trader and Twitter’s go-to expert for technical analysis, Adam Cochran, has caused a stir with a recent tweet. In it, he revealed an address engaged in a massive USDT (Tether) to DAI swapping spree. The said address is funded by none other than Binance and is closely linked to multiple addresses that are diligently offloading USDT.
What could be the motive behind this intriguing chain of transactions? Let’s dive into the details.
Cochran meticulously traced the origins of this enigmatic address, unraveling a long chain of interactions with USDT spanning the past year. Eventually, it all led back to an address that received substantial ETH (Ethereum) funding from Binance. This discovery raised eyebrows and left the crypto community speculating about the possible motives driving these complex dealings.

The address that's mass swapping USDT -> DAI is Binance funded and has multiple addresses bulk selling USDT.

It's a long chain of addresses that have been interacting with USDT over the last year.

But goes back to an address funded with 1000s of ETH from Binance
The addresses involved were initially engaged in straightforward USDT inflow and outflow. However, approximately 100 days ago, a significant shift in their activities was observed. The previously one-dimensional exchanges started converting incoming USDT to DAI. The sudden change in approach added an element of intrigue to an already puzzling situation.
Amidst this digital labyrinth, two specific addresses stood out as key players in the Tether-to-DAI conversions. These addresses appeared to be central to the process of transforming Tether holdings into DAI, triggering further curiosity.
Adding another layer of mystique to the saga is the fact that these addresses have been targeted by spoof phishing attacks. Typically directed at exchanges, these attacks raised suspicion that the addresses might be linked to some sort of exchange activity. The possibility of such a connection has only deepened the mystery surrounding this peculiar case.
Read More: Tether Now Holds More U.S. Treasuries Than Australia, UAE, and Spain
A Break from the Norm
What sets this chain of transactions apart is that it deviates from the typical behavior of automated market-making tools. Instead of making profits, these transactions have consistently resulted in a loss. This divergence from established norms raises questions about the underlying motives and the individuals behind it.
The transactions follow a specific pattern, where stablecoins like BUSD or Tether are received from Binance and then exchanged or sold to DAI. Subsequently, the DAI is dispersed through multiple addresses, effectively splitting and diversifying the holdings. This pattern has been diligently maintained for several months, adding to the mystery surrounding the entire affair.
The Mystery Gets Deeper
To add to the intrigue, there has been a recent surge in the frequency of these transactions. The reasons for this sudden acceleration remain shrouded in ambiguity, further heightening interest and curiosity in the crypto community.
The crypto community is divided on the motive behind these transactions. What do you think?

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