The South Korean cryptocurrency exchange Bithumb has revealed a large number of inactive balances held on the exchange following a company-wide assessment. A total of approximately 291.6 billion Korean won has been identified as inactive balances on the exchange. This is equivalent to $201.8 million. The balances are distributed among approximately 2.6 million user accounts.
The discovery happened during a recovery operation that targeted users who had been inactive for more than a year. Most of the users that Bithumb targeted were those that had not logged in or traded on the platform for a long time. Some had been idle for more than a decade.
There exist several portfolios that remained exceptionally inactive. The length of inactivity tended towards 4,380 days, or close to twelve years. The peak inactive holding value was about $2.84 million. It can be noted that the first users of crypto never went back to handling portfolios.
Also Read: South Korean Crypto Exchange Loses $35 Million in 15-Minute Hot Wallet Hack
Early Crypto Adoption Left Millions of Dormant Accounts
These dormant accounts can trace their roots back to the early adoption periods of crypto. Many people signed up out of curiosity or a speculative mind-set. Later, downturns in the market reduced enthusiasm. People may have forgotten small transactions. They may also have felt their balances were not significant enough, causing them to ignore the accounts altogether.
Over the years, the effects of bear market trends, along with the corresponding departure of retail traders, also contributed. The closure of exchanges and a lack of credentials also influenced this departure. Yet, the prices continued to rise. Such increased values turned unattended assets into a substantial amount without the intervention of the account owners.
Bithumb Uncovers Forgotten Crypto With Massive Gains
Bithumb pointed out that some dormant assets recorded appreciation ratios that surpassed 61,000 percent, or rather 610 times. Such appreciation ratios involved tokens that had been acquired during the earliest phases of the market. Some dormant assets performed better compared to Bitcoin.
The value of Bitcoin also increased dramatically during this time. Some of these neglected assets still managed to register higher multiples, despite this sharp increase in Bitcoin’s value. It is very likely that many holders may not be aware of the magnitude of their unrealized profits.
The exchange has held campaigns in the past to facilitate recovery. During its eleventh year, it saw around 36,000 users recover close to $50 million. This campaign, however, will take place on a larger platform. Bithumb plans to notify and help users recover through direct notifications.
Also Read: Korbit Faces $1.9M AML Fine After South Korea FIU Inspection
