Coinbase, a leading crypto exchange, has introduced a new feature allowing users to recover assets mistakenly sent to the platform’s unsupported blockchains, such as BNB Chain and Polygon. According to the announcement on Feb. 27, users looking to reclaim their lost assets only need to provide a transaction ID and the inbound Coinbase wallet address, facilitating recovery.
Historically, recovering assets sent to unsupported blockchains has been challenging, largely because access to the necessary private keys is restricted to ensure security. Coinbase’s new system addresses this issue, offering a solution for users who have inadvertently transferred assets to the wrong blockchain. For amounts under $100, Coinbase is waiving the recovery fee, while a 5% commission applies to larger sums.
Coinbase aims to streamline asset recovery process
Coinbase’s asset recovery tool responds to the common issue of sending digital assets to incorrect or unsupported networks. This problem has resulted in significant losses for users. The tool has successfully reclaimed $160 million in lost digital assets from the Ethereum blockchain alone. With approximately 3,000 ERC-20 tokens sent mistakenly via BNB Chain and 800 via Polygon awaiting recovery, this feature is poised to address a critical need within the crypto community.
The recovery process, while theoretically straightforward, has previously required extensive coordination and effort, often involving senior exchange executives due to the multisig nature of exchange wallets. In comparison, Binance, another major crypto exchange, reportedly charged around $500 for each asset recovery operation in 2022.
Future expansion and user support
Coinbase has expressed its commitment to continuously explore and extend the capabilities of its asset recovery feature to include more assets and networks. This endeavor acknowledges the technical complexities of retrieving unsupported assets and indicates a forward-thinking approach to user support and blockchain interoperability. However, due to these complexities, the exchange has also noted that it cannot guarantee future support for all assets.
Source: https://www.cryptopolitan.com/coinbase-feature-recovering-assets/