Poloniex is in the news again after it announced the addition of the destination tag feature for XRP wallets, a supreme feature which created quite a ruckus within the community and Coinbase just a few months ago, resulting in users temporarily losing their funds.
XRP has been home to many controversies over time. In March 2019, the XRP community was at loggerheads with the United States’ popular exchange, Coinbase, shortly after it listed the coin. Being the largest exchange in the US, the addition of XRP was much celebrated in the community, but the celebration was short-lived as users complained of losing their XRP on the exchange. But, little did they know that this problem was due to the sensitive case of ‘destination tags.’
Coinbase’s saga with destination tags
One morning, the XRPL developer, Wietse Wind, realized that he was one of the victims to have lost their funds while making a transaction, with an email from Coinbase confirming that his funds were “lost”. Wind had taken to Twitter and said,
“Now I’m getting frustrated.
: 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.”
After receiving flak from not just Wind, but from most XRP community members, Coinbase informed that the issue had been caused with the destination tag on XRP transactions and according to Matt Hamilton, a software developer, the problems with the UX caused many users to “mistakenly omit the tag.”
What is a destination tag?
Used mainly for XRP,