XRP community rejoiced on the coin finally getting listed on Coinbase exchange, however, their happiness was short lived as the users were told by the exchange that their XRP is “permanently lost”.
After adding the third largest cryptocurrency to their exchange, when the users tried sending XRP to another user through Coinbase, their XRP was reported to be lost. There was an error on the user’s end of typing wrong destination tags, used by XRP. As the tag generally helps the exchanges to make sure the funds go to the right user, in case of Coinbase, it e-mailed the customer that “Because you used an incorrect Destination Tag with your XRP transaction, Coinbase is not be able to recover your cryptocurrency as it is permanently lost.”
It is deemed to be important for a user to insert correct number when sending XRP to exchanges, however, due to human error, the number entered by a user can be wrong and most exchanges practice in manually allocating these funds to the customer as Bitrue does. However, Coinbase did not.
This has caused an uproar in the community and the XRP community is calling out Coinbase on this and not being prompt to fix this problem. Wietse Wind, xrptipbot developer and a prominent part of the XRP community wrote Coinbase:
“Now I’m getting frustrated. @coinbase: this is simply *not true*.
“Coinbase is not able to recover […] is permanently lost”
The XRP most definitely *isn’t lost*, it’s in your hot wallet! And you’re not “not able” to recover, you simply REFUSE TO. This is misleading.”
There is an ongoing debate in the crypto community about this issue and Coinbase’s unwillingness to fix this issue. Matt Hamilton noted that according to his knowledge this is a user experience or “UX issue in the wallet being used that cause the user to mistakenly omit the tag.”
However, he was contradicted by Wind himself as he explained this is not a technical issue and such a problem has occurred with TipBot. Wind said:
“Or (and this happens with the TipBot every now and then as well) people enter the tag, but a wrong (non existing) one. Shit happens. That shouldn’t result in loss of funds.”
This event has prompted many users to switch exchanges as Twitter users discussed the efficiency of other exchanges like Binance and Bitrue. This situation appears to be a loss for Coinbase as the Chief Executive Officer [CEO], Brian Armstrong and the Exchange have not officially acknowledged the issue.
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