Bitcoin data manipulated by Coinbase?
Is Crypto Exchange Coinbase Deliberately Manipulating Bitcoin Data? A blockchain analyst reveals how a company employee is attempting to shore up the cryptocurrency’s disappointing metrics during the bear market. The CDD falls to its lowest level since 2010.
Bitcoin: Coin Days Destroyed (CDD) falls to multi-year low
The Coin Days Destroyed metric , or CDD for short , falls to a multi-year low. The last time Bitcoin blockchain data recorded such a bad result was a year after the creation of the first cryptocurrency in 2010.
Back then, blockchain data was recorded for the first time. The CDD is considered an intelligent metric to assess the market situation. This is an alternative evaluation of the transaction volume.
The CDD not only calculates the volume sent, but also assigns UTXOs according to their weighting. The longer the Bitcoin sent was held, the higher the CDD.
The CDD thus evaluates the so-called use of smart money, i.e. the activities of experienced users. The observer should get an insight into when long-term holders and strategists use their cryptocurrency.
Bitcoins CDD falls to a multi-year low, according to a trading analyst. According to this, the value has never been as bad as it is today since 2010. Are long-term owners no longer using the digital payment system?
Why is the CDD falling so sharply?
According to trading analyst TXMC, the CDD has literally collapsed. TXMC relies on data from Glassnode. In fact, there are possible connections with the current market situation.
Since the explosion in user numbers in 2017, BTC has lost some of its importance as a means of payment. Transactions are slow and expensive. Some people who want to remain loyal to the oldest cryptocurrency and use it daily are therefore switching to the Lightning Network .
LN is not included in the mainnet data. At the same time, Bitcoin is in a deep bear market . It has lost 72 percent of its value since its all-time high last November. Low phases are usually characterized by less willingness to invest.
Coinbase Employee Manipulating Bitcoin Data?
This is where the on-chain analyst ErgoBTC comes in. He observes that an employee of the crypto exchange Coinbase wants to improve the bad CDD value of the Bitcoin. To do this, the stranger uses his access to the wallets of the US company and repeatedly sends the coins back and forth.
The Coinbase Key Management intern is quite busy this morning.
Writes ErgoBTC yesterday, referring to blockchain addresses that are assigned to the crypto exchange. Four affected wallets have not sent a single Bitcoin for four years. Only incoming payments were received.
Now the responsible person suddenly empties the wallets. Due to the high volume of tens of thousands of Bitcoin and the long period of inactivity, the transactions have a major impact on the CDD.
Some hot wallet management [can be seen], but for now mostly key rotation from cold to warm.
Continues ErgoBTC. Apparently ironically, he adds:
The responsible intern obviously wants to improve the data of a dying blockchain.
Even if Coinbase’s transactions aim to whitewash the CDD, the manipulation has no significant consequences.
