Have you experienced the frustration of forgetting your bank account password? Especially during the rushing time like making payment? Well, of course, you can just hit the ‘forgot password’ option and set up a new password later. However, there is no option for the ‘forgot seed phrase’ in cryptocurrency.
If you are engaged in regulated exchanges, probably, you don’t have to worry about seed phrases. It is because your fund is in their custody until you decide to transfer it out.
If you are using a private crypto wallet, either a hot or cold wallet, the fund custody is in your hand. Each generated wallet comes with a seed phrase. If you lose it, you will lose all your fund in the wallet forever.
The case of former Ripple CTO, Stefan Thomas
Stefan Thomas is the former Ripple Chief Technology Officer (CTO), is scratching his head to figure out his password. In 2011, he received Bitcoin as a gift for making educational videos on Bitcoin. Reportedly, there are 7,002 of Bitcoin in his IronKey hardware wallet, totaling around $230 million in the current Bitcoin price.
At first, he has ten tries to figure out his password before it is locked forever. He has used eight attempts and left with two more. Commonly, if you have forgotten the password for a wallet, you can gain access using a seed phrase. In this case, he lost his seed phrase.
Can you feel his frustration? We sure do. Let’s hope he can remember his password or somehow found his seed phrase.
Such events are frequent in the cryptocurrency world, especially for beginners. So far, it is impossible to recover seed phrases. According to a report, the total Bitcoin lost forever is at 3.7 million.
Such a waste!