What is a Memo/Destination Tag?
Memo or Destination tag ensures recipients do not end up losing cryptos during the transaction process. This feature is required by a selected list of cryptocurrencies.
Which cryptocurrencies require Destination tag (Memo) technology on Liquid?
Clarity Token (CLRX)
HOT Token (HOT)
Hedera Hashgraph (HBAR)
Cryptocurrencies mentioned above support numeric-only or alphanumeric Destination Tag/Memo.
Does Memo replace wallet addresses?
Memo Tag does not replace the wallet address. Instead, it acts as a secondary, additional method of identifying the correct recipient.
Why use Memo?
Most centralized cryptocurrency exchanges use a single address for all traders who deal with cryptocurrencies that use the Destination Tag/Memo technology. Therefore, Memo acts as an identifier to pinpoint the correct recipient.
Note: You do not need to enter the Destination Tag/Memo while withdrawing cryptos to a private wallet. A personal wallet provides users with complete control over the public and private keys. For example, Metamask or Ledger.