Coinbase Drops Bombshell Warning: Cardano and Litecoin Face Mounting Risks in 2025
Crypto giant Coinbase just flashed a red alert—Cardano and Litecoin investors might want to buckle up.
The warning shot
While neither coin is dead, the exchange's latest risk assessment reads like a prelude to a storm. Regulatory scrutiny? Check. Declining developer activity? Yep. The kind of stuff that makes traders reach for the 'sell' button faster than a Wall Streeter dodging accountability.
Why it matters now
Mid-2025's crypto landscape looks nothing like the freewheeling bull runs of yesteryear. Projects without airtight fundamentals—or billionaire meme coin hype—are getting filtered hard. ADA and LTC aren't meme coins, but they're not Bitcoin either.
The cynical take
Let's be real—this 'warning' probably came right after some hedge fund finished shorting both assets. Welcome to crypto, where 'risk alerts' and profit plays are often the same thing.
$0.565744 (ADA) and Litecoin (LTC) holders due to the wrapped cbADA and cbLTC coins launched on the Base Layer-2 network on June 26, 2025. To assure transparency, the exchange notified that it holds a 1:1 reserve for each coin. However, it also cautioned investors about the potential circulation of fake contract addresses, urging them to transact only with the official contract addresses mentioned in the announcement. The warning was issued at a time when these new coins were rapidly attracting liquidity to the Base network.
ContentsCoinbase’s Warning for Altcoin HoldersRecent Developments in the Base Ecosystem
Coinbase’s Warning for Altcoin Holders
In its statement, Coinbase shared the official contract addresses for cbADA and cbLTC through Base explorer links, clearly highlighting the risks of “fake coins.” The company emphasized the importance of double-checking address sequences and avoiding ambiguous contract links before making transfers.
Current data reveals that over 11,300 wrapped LTC and 2.9 million wrapped ADA coins are already in circulation within the network, with the total locked value reaching $3 billion. Rapidly growing pools create a breeding ground for scammers to siphon liquidity through fake coin sales. Coinbase advises investors to directly verify contract codes before getting tempted by high return promises.
The exchange recalled that similar models were successfully implemented with Bitcoin
$107,482, Ethereum
$2,466, XRP, and Dogecoin
$0.162832 in previous versions. Nonetheless, the principle of “verify before signing” was reiterated as an indispensable part of ensuring on-chain security because investor errors cannot be undone in smart contracts.
Recent Developments in the Base Ecosystem
On the Base platform, cbADA and cbLTC are usable as collateral, in yield farming, and for payments in decentralized applications. This allows ADA and LTC coin holders to participate in Base-based protocol reward mechanisms without selling their assets. The Coinbase wallet has been updated to facilitate bridge transactions with a single click.
The announcement also included information about preparations for listing the Solana
$144-based Wormhole (W) altcoin, the trading of RENDER (RENDER) and Ethena (ENA) altcoins in Germany, and the global listing of Newton (NEWT) and Sonic (S) altcoins. Coinbase added that the expansion of asset diversity on the Base aims to increase overall volume.
