Coinbase Sounds Alarm for ADA & LTC Investors: Wrapped Token Risks on Base Network
Hold onto your private keys—Coinbase just dropped a warning flare for Cardano and Litecoin holders dabbling in wrapped tokens on its Base network.
Proceed with caution—or prepare for the classic crypto tango of 'not your keys, not your coins.'
Because nothing says decentralized finance like a centralized exchange telling you where not to park your bags.
What Are cbADA and cbLTC?
cbADA and cbLTC are ERC-20 tokens representing wrapped versions of Cardano and Litecoin, respectively. These tokens allow users to bridge their ADA and LTC holdings into Base, a Layer-2 Ethereum-compatible blockchain developed by Coinbase.
According to the official reveal , these tokens are backed 1:1 with the original assets, meaning for every cbADA or cbLTC token, there is an equivalent amount of ADA or LTC held in reserve by Coinbase. The idea is to enable ADA and LTC liquidity to FLOW into Base’s on-chain ecosystem, making it possible for users to engage with DeFi applications using these assets.
This initiative is part of Coinbase’s broader effort to improve token utility and expand its ecosystem across various blockchains. The company has previously launched similar wrapped versions for Bitcoin, Ethereum, XRP, and Dogecoin.
Rapid Growth and Adoption
Since their introduction, cbADA and cbLTC have seen rapid adoption. Coinbase reports that over 2.9 million cbADA tokens and 11,300 cbLTC tokens are already circulating on Base, collectively contributing to a total value locked (TVL) exceeding $3 billion.
By allowing ADA and LTC to participate in decentralized finance protocols, the launch offers additional opportunities for holders beyond traditional trading and staking. Users can now lend, borrow, or swap these wrapped tokens within Base’s growing suite of applications.
However, this surge in interest has also attracted the attention of malicious actors.
Coinbase Issues Fraud Warning
In response to growing community excitement, Coinbase has issued a warning that fraudulent tokens mimicking cbADA and cbLTC may begin circulating in the market.
“There may be fraudulent actors pretending to be cbADA and cbLTC,” Coinbase stated in a recent alert to users. The company emphasized the importance of verifying contract addresses before interacting with these tokens to avoid scams or loss of funds.
To assist users, Coinbase published the official Base contract addresses for cbADA and cbLTC and encouraged investors to double-check this information before trading or adding tokens to wallets.
How to Stay Safe
This warning serves as a reminder that security in crypto remains paramount. Coinbase advised users to remain vigilant, avoid engaging with suspicious links or offers, and always verify token details through official sources.
The classic security advice in crypto still holds true: “Don’t trust, verify.” Investors are urged not to rely on word of mouth or social media claims but to check directly on Coinbase’s official resources before making any transactions involving cbADA or cbLTC.
Additional Coinbase reveals
In other Coinbase news, the platform has added, a Solana-based token, to its roadmap, signaling a potential listing in the NEAR future. This reveal further highlights Coinbase’s commitment to expanding its multi-chain offerings.
Additionally, RENDER (RENDER) and Ethena (ENA) are now accessible to German residents, enabling users to trade, send, receive, and store these tokens via Coinbase’s platform and mobile apps.
Two new assets, Newton (NEWT) and Sonic (S), have also been listed on Coinbase and are now available for trading.
These continued additions indicate Coinbase’s ongoing strategy to diversify its offerings and support a wider range of crypto ecosystems.
The Bigger Picture
Coinbase’s move to wrap ADA and LTC and bring them into its Base Layer-2 ecosystem signals a major shift toward interoperability and multi-chain functionality. For Cardano and Litecoin holders, this means access to a broader array of DeFi tools, smart contracts, and applications—something neither chain is currently known for natively.
However, with innovation comes risk, particularly in the fast-moving crypto world. Wrapped assets and bridge protocols have previously been targeted by attackers, making Coinbase’s warning both timely and essential.
As Base continues to grow, Coinbase is expected to roll out additional wrapped tokens and enhanced functionality for existing ones, but the exchange’s latest statement underscores a key point: Security must come first.
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