- An unknown whale moves Synthetix tokens worth approximately $1.2 billion on the Ethereum token
- The transaction was confirmed within 30 seconds with a transaction fee of $7.5
- This transaction shows immense advantages digital assets have over the traditional banking industry
For a long time, digital assets and their underlying blockchains have been touted as the perfect replacement for the traditional banking sector as it exists today.
Cryptocurrencies easily win over the banking sector when it comes to transaction speeds and fees. However, this particular transaction shows just how much the difference exists between both worlds.
$7.5 Fee for A Billion Dollar Transaction
A large entity, otherwise known as a whale, completed a transaction of $1,197,013,325.12 in Synthetix (SNX) tokens while only paying a transaction fee of $7.5.
The data from Etherscan data showed that the money was transferred from a contract named “Synthetix: Reward Escrow” to an Ethereum wallet that contains the $1 billion in SNX tokens. The tokens were transferred from this wallet ID to this.
At the time of this writing, a Synthetix token trades at $15.97 with a daily trading volume of $228.3 million. When the transaction happened, a SNX token traded for $14.65 while an Ether exchanged hands for $1,169 apiece.
On the Flipside
- The Indian law enforcement agency has arrested a 26-year old hacker from Bengaluru Karnataka for stealing Bitcoin worth $1.2 million.
- The accused, Srikrishna, allegedly hacked three Bitcoin exchanges and 10 Poker Sight during his spree.
- Similarly, two Chinese nationals were among 12 arrested in Delhi for fraud through malicious mobile apps.
- These increasing cases of crypto-related fraud have been linked to the recent bull run of crypto markets and the prolonged lockdown.
What is Synthetix?
Synthetix is a decentralized derivatives liquidity protocol on Ethereum that enables the issuance and trading of synthetic assets. The protocol mints new synthetic assets with cryptocurrencies, such as Ether (ETH), as collateral.
On the platform, users can borrow and trade various assets with many cryptocurrencies on a DeFi derivatives platform.
On paper, the Synthetix platform can support every asset with a clear price and provide on-chain exposure to an unlimited range of real-world assets. The Synthetix protocol could be used for trading features including binary options, futures, and more.
The project which started in 2018 has found major success both in the market in its use cases. Very recently, Optimistic Ethereum Mainnet was soft-launched on the Synthetix platform.
The project aims to solve the problem of skyrocketing gas prices on the Ethereum blockchain as well as the transaction problems of Ethereum using the Optimistic Virtual Machine (OVM).
Cryptos Are the Future of Banking
An average banking transaction takes about 2 to 5 working days to be completed. A transaction of this magnitude may take weeks to be completed, after going through more offices than one would normally like.
Transactions performed within a traditional bank would incur 3 – 5 percent transaction fees. If those transaction fees were applied here, somewhere between $35 and $55 million would have been lost to transaction fees. There will also be extra charges if it involves moving the money from one country to another.
Blockchain completely eliminates a lot of those bottlenecks, as is the case with this transaction. The entire transaction of over $1.19 billion was confirmed within 30 seconds. If you need further confirmation that digital assets are the future of the banking industry, here you have it.