Lost CHP Returned: Reminder to Transfer Carefully

As blockchain technology makes it into mainstream markets, the need to educate users on correct usage is increasingly important. It has come to our attention that new players have struggled with some aspects of the CHP purchasing and transfer process, which is why we are taking extra measures to ensuring that our community is well informed.

We have gone through great lengths to try and retrieve funds lost by users who accidentally transferred CHP tokens to our smart contract address. The main source of confusion being that our smart contract address was mistaken as our wallet address, which is not the case.

Smart Contract Addresses vs. E-Wallet Addresses

Smart contract addresses are not designed for transactions, and we are unable to control them in the same way a regular wallet can. As a result, the tokens transferred to the smart contract address are permanently lost. Moreover, contracts cannot be edited after deployment for security reasons, otherwise it would be impossible to trust that a contract does what is expected.

As a gesture of goodwill, and understanding that the new technology can be puzzling for beginners, we have decided instead to reimburse players from our pockets. We want our players to embrace the many benefits of cryptocurrency, and are making an exception by returning a total of 60,000 CHP to players who have made this mistake. No policy requires us to do this, and while we agree to do so on this occasion we cannot guarantee that this will be done in the future.

Moving forward, we feel that it is our duty to educate players as best as we can, starting with a brief explanation on why Ethereum blockchain transactions such as these cannot be undone.

Remember: Cryptocurrency Transfers are Irreversible by Design

Unlike holding your funds in a bank, there is no centralized authority that has the power to “undo” transfers. This is because the entire concept of Ethereum Smart Contracts (the technology CHP is based on) is based on being entirely decentralized, where instead of an authority like a bank verifying a payment, fellow users (or peers) share the verifying via mining.

Cryptocurrency mining, unlike what it sounds like, has nothing to do with digging and discovering tokens. What miners actually do is utilize computer power to crack a code that is assigned to each transaction made. The miners are rewarded with a small cut, which can be considered as a transaction fee for their efforts.

But no one miner can be held responsible for one transaction.

Transactions on the Ethereum blockchain (as well as the Bitcoin blockchain) come in bundles or blocks; hence the name blockchain. This is to maximize security and ensure that there is no way to tamper with transactions in any way. Sadly, that also includes undoing mistakes.

Why Transferring Directly from an Exchange is a Big No-No

Another very common mistake that we are always warning players about is transferring directly from an exchange. While it seems like sending the CHP to you wallet from the exchange and then sending to our address seems tedious, it is crucial that its done this way.

Here’s why:

When you open an account at an exchange, your funds are held there in what appears to be a bank account of sorts. But the truth is that your funds are held in a single giant wallet owned by the exchange (extra tip: hodling crypto on an exchange is very risky; if they lose their funds so do you).

What happens when you transfer from an exchange to the correct CoinPoker wallet is that we will receive funds with “Your Exchange” as the sender; not your verified wallet on your account.

Now there’s a bigger problem: there is absolutely no way for us to track down which account on the exchange sent it unless the exchange agrees to collaborate. However, this is something that is outside our team’s control and ability to assist with, which is why we urge players to heed the warnings and transfer to their verified account first.

Stay Secure and Follow Instructions Carefully

The last thing we want is for players to lose their funds or become frustrated with the CHP purchasing process. That’s why our team is available to help you anytime on Telegram or via email at support@coinpoker.com.

As a final reminder, please make sure you follow the deposit instructions carefully. For more details on how to purchase CHP tokens, check out our full guide here. Best of luck at the tables!