[IOI] - Large Txn Activity Address

[kingschmidty]

Which Algorand network?

MainNet

Details

One of the most interesting addresses on the Algorand Blockchain in my opinion is YHIYCCBE3Y72Z5DIHQFBBPL4PN2PJ7OWXEE53XYPAR7EETR5GQV4UHFHOE. It has done over 16M txns in 2024, and the rate is increasing, https://allo.info/account/YHIYCCBE3Y72Z5DIHQFBBPL4PN2PJ7OWXEE53XYPAR7EETR5GQV4UHFHOE. This address was funded with nearly 700k ALGO from Kraken, through this address, https://flow.algo.surf/address/EW2KNKQ7LLC4RVN3P4MAOYVYBOB7OKK5VN26TC3TVW26LVU34CL5YZLMPA. And it currently has around 440k ALGO. Also, all of the addresses it interacts with, only interact with it, https://allo.info/account/NVLKSK4LFEN337KRGD3XGCM2RIBA3VVOWKEHJCJAC3WTC3C634ZN2SH6ZQ/txns, https://allo.info/account/3DWJUUR47LMFZCW46KLK7X24DONZA4OKHHAKIKZXVXT4ZEFF5BQ27GIMJU/txns, https://allo.info/account/4ZYXJDM6VSDWKHSBS2WGN2IXUWMJLMKSXZZK6VKN7D377RUCPDZTOQVQ3U/txns.

Why this account is so interesting is that its txns are not easily understood as to how they can be useful. The txns go to addresses, which shortly close back to YHIY. YHIY is opted in to no assets or applications. And the txn notes going out all have the note, 'ZK64L7IV,' and no txn notes coming in. Thus, the question arises, what is this address doing that has been worth nearly 200k ALGO spent? For a payment service, I would expect txns using a tokenized ASA. For a notary service, I would expect some txn notes, or asset configuration. For a spam or address poisoning activity, I would expect the recipients to be already used addresses. So this mystery has plagued me for months.

Trying to analyze 16M txns is intractable. So instead, I began to look at the addresses that interacted with YHIY the most, beginning with HS2TXQTAGBXCGDCABSJU3VBH5NCV4P7P34AXEFPC34ZTVPOPHE4NEXMTPM. The txn amounts were not consistent amounts, but tended to be in a similar range. However, when I plotted them with the time a pattern started to emerge.

This chart had a couple of bands, with the lowest band being the thickest. The lowest band also seemed to move similar to a price chart. So I was began wondering are these ALGO txn amounts denominated in a different currency. So, I took the ALGO-EURO price, and took the average of the daily high and low, and converted the ALGO value to EURO value. That chart is below.

Then I did the same thing, but for USD, and variance on the band was much tighter, and the value around that first band was at a nice round $10. Such a tight band and around a round number, seemed to indicate that the ALGO txns to this address were amounts denominated in USD.

Next, I wanted to confirm this behavior on the other most interacted with addresses, 6SIM6LTTBOGYSIZB6LBSEGHURMQEFV6M53D4G7C4FRP4KBFZ6DB62U32RA
YDZOSNCBE3COWDAIHZJH3X4VPVL7IFJA3I6OZMUQAH5AVJBH4WYMPOFL6I
3BHLRXX4IZZMLPQDJSTHT5GBXOTTOA3MHRSFZQNHLGLBLC2TQJZG35V5TM
GPORNHE656C2QBULEDMU6JS3VOJGAYVRTCVMVQFWROFS5S4XSDMC2T6GO4
WYB45667MURDWGQPBASJPQK4ZK7C56U4GPCIAHY3AR7D7FNO2TYMUQJYKM
FVPFDYY74IKYS4WZHTPYYCHTIIPIM6Q3233QYUAKOX5R3PBMUVMWVYP3PA
ZI5NHN3SSSDN6UEUIIWC72L6XX75MEJHPKACBIW2T3GNNTMBI4DJBWFGKM
3CWZYOLJKCBHPLUGM3V2HCO35KTQ7HF5WSOWDYXJBZJW4B77NWMOBFU2QY.

Some of these addresses also had regular txn amounts which in dollar terms were clustered at intervals of $10. For example look at the charts for 3BHL, FVPF, YDZO. Each of these also exhibits bands of txn values at round dollar amounts. And each seems to have a $10 minimum transaction value.

However, some of these addresses, seemed to txn amounts which were round numbers when denominated in EUROs. 6SIM had bands at 10 and 20 EURO amounts. GPOR had bands at 10, 15, 20, and 25 EUROs. 3CWZ had bands at 10 and 20 EURO.

Finally, some addresses did not show any discernable connection to a dollar denomination. Either because the address was active for too short of a duration (5CK7). Or that there were no discernable bands/clusters of common dollar denominated values (ZI5N). Despite this limitations, both addresses still upheld that the minimum value transferred was over $10.

Overall, from the activity associated with these addresses, looks like YHIY is doing some sort of accounting, where each address it interacts with is also run by the same entity, and merely represents a separate party (like a custodial account). The amounts, despite being ALGO transfers seem to be denominated in USD and EURO, and seem to have a minimum value of 10. Most amounts also seem to be round numbers such as 10, 15, 20, 25, 30, 40 and 50 dollars worth. And since the address has been involved in 16M txns, so this is likely a large organization. If I were to put out a guess, I think a company like AIDTech would make sense as an owner. I think they are custodial in nature, only allowing funds to be redeemed at certain vendors such as Walmart, and I think the financial support requests have a minimum, which would make sense with the large number of transactions at that $10 amount. It would also make sense for the quantities to match dollar denominated amounts. That, said, I have no means of identifying this account, but think that it should be watched, since it is such a large user of the Algorand Network.

[kirse]

My man, this is some excellent analysis! I did not realize AidTech was the company behind the Kare Survivor Wallet, but the rounded numbers make logical sense. Will keep an eye and dig further