In Search of Lost Cryptos: Coinbase Launches Funds Recovery Tool

The use of the blockchain, in general, remains complicated for a majority of users. Even if applications and platforms do their best to have a clear and ergonomic interface, it is not uncommon for errors to be made in sending cryptocurrencies. Coinbase has just set up a tool to help its users in the event of an error.

Contents

The mistake that often costs a lot of money

Send a token to the wrong address, this is something that has happened to the majority of people who are in our ecosystem today. This is why it is always advisable, especially before making a large transfer, to send a very small portion of token to the desired address, in order to check that there are no errors. This kind of thing is common when you move your cryptocurrency from one wallet to another, for example.

Coinbase in the hard

But, for exchanges, there is another recurring problem: sending the wrong cryptocurrency to an address used for another token. Many users make mistakes by sending, for example,ETH on a Polygon address. Very often, in this type of case, the platforms have a “case by case” policy. Some attempt to resend the funds, or transfer them to the correct address. Others make it clear that it is impossible to do anything. In all cases, it is the customer service that is responsible for handling.

>> You don’t trust the platforms to keep your cryptos? Ledger has the solution (commercial link) <<

Coinbase offers a lower cost solution

This is why Coinbase has worked on the subject, and now announces that it can help users via a dedicated tool. It only works for ERC-20 type tokens, for around 4000 tokens different.

Sometimes our customers mistakenly send unsupported tokens to their Coinbase address. Historically, these assets have been unrecoverable, in part because our employees and support channels do not have access to the private keys needed to undo these transactions. […] Today we are announcing Coinbase’s new ERC-20 self-service asset recovery tool. Over the next few weeks, all eligible customers will have access to the asset recovery tool. »

Announcement on the site from Coinbase

In case of mis-sending, users will need 2 things in order to get their funds back. the Ethereum TXID of the transaction and theCoinbase address on which the token was sent.

The tool is able to move assets to another Coinbase address, or a personal wallet, so the user can prove ownership.

According to Coinbase, the technology used for these recoveries is patent pending. The number of managed tokens is still limited, but the exchange wants to expand it as much as possible over time.
No fees are applied if the amount to be recovered is less than $100 at the time of the transaction. Beyond, 5% commissions will be charged to cover development, maintenance and usage costs.

The fact that the tool is scalable and allows the user to recover their funds on their own, without third party intervention, should bring a number of sighs of relief in the future. Will the fact that the system is patented prevent its appearance on other platforms? Or is it Coinbase will agree to “rent” its technology? The future will tell.

In crypto, do not economize on caution! So, to keep your crypto assets safe, the best solution is still a personal hardware wallet. At Ledger, there is something for all profiles and all cryptos. Do not wait to put your capital in safety (commercial link)!

Leave a Reply

Your email address will not be published. Required fields are marked *