Coinbase Debuts Asset Recovery for the BNB Chain and Polygon

In a significant development for its users, cryptocurrency exchange Coinbase has announced plans to introduce a feature allowing the recovery of lost assets sent to the platform’s unsupported blockchains, including BNB Chain and Polygon. 

The move is set to ease the burden on users who have encountered difficulties in retrieving mistakenly sent assets historically. As reported earlier by TheCoinRise, Coinbase is currently working on bringing derivatives products to Canada, a region known for being strict when it comes to digital asset services.

Coinbase has a Path to Asset Recovery

According to the announcement made on February 27, users facing this issue will now have a straightforward path to asset recovery. By providing their transaction ID and inbound Coinbase wallet address, users can initiate the process of reclaiming assets sent to Coinbase accounts on the BNB Chain or Polygon. 

Notably, this initiative marks a departure from the historical inability to recover such assets due to the lack of access to private keys needed for transaction reversals.

Free of Charge Recovery

For assets valued under $100, Coinbase will facilitate recovery efforts free of charge. However, for amounts exceeding this threshold, a commission fee of 5% will be applied to cover the resources involved in the recovery process.

Coinbase’s move aligns with the industry trend of addressing the challenges associated with wrongly sent assets. While crypto exchanges typically operate wallets with multisig functionality, supporting various blockchains and assets, recovering assets sent to unsupported networks involves significant time, effort, and coordination. Previously, exchanges like Binance charged users up to $500 for each retrieval of wrongly sent crypto assets.

Coinbase Recovery Tool’s Success

Since its inception, the Coinbase recovery tool has successfully retrieved a noteworthy $160 million worth of lost digital assets from the Ethereum blockchain. The platform currently faces the challenge of managing around 3,000 ERC-20 tokens mistakenly sent via BNB Chain and 800 similar tokens sent via Polygon.

Coinbase aims to enhance its recovery feature further, with plans to explore and support additional assets and networks. However, the platform emphasizes the technical complexities involved in recovering unsupported assets, stating that it cannot guarantee eligibility for any particular asset in the future.

Skyrocketing Revenue

As reported earlier by TheCoinRise, Coinbase has surpassed analyst expectations with its fourth-quarter financial results, reporting a revenue of $953.8 million.

Notably, this represents a notable 41% increase from the previous quarter and a significant 50% increase compared to the same period the previous year.