XRP community rejoiced when the token was finally 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 users’ end as many typed the wrong destination tags used by XRP.
The tag generally helped exchanges make sure that the funds go to the right user and in this case, they e-mailed the customer that their funds were lost. Their mail read:
“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 important for a user to insert the correct number when sending XRP to exchanges. However, due to human error, the number entered by a user can be wrong and most exchanges manually allocate the funds to the customer. However, Coinbase did not deem it necessary to undertake the procedure.
The development caused an uproar in the community and the XRP community is calling out Coinbase over not being prompt in fixing the problem. Wietse Wind, the xrptipbot developer and a prominent member of the XRP community, wrote to 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 the issue and Coinbase’s unwillingness to fix it. Matt Hamilton noted that according to his knowledge, this is a user experience or “UX issue in the wallet being used that caused the user to mistakenly omit the tag”.
However, he was contradicted by Wind himself as he explained that it was not a technical issue and that such a problem had occurred with TipBot as well. 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.”
The event has prompted many users to switch exchanges as Twitter users discussed the efficiency of other exchanges, including Binance and Bitrue. The situation appears to be a loss for Coinbase as the Chief Executive Officer [CEO], Brian Armstrong, and the Exchange have not officially acknowledged the mishap.
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