Coinbase Issues Crucial Warning as Tokenized Bitcoin Launches

Major Crypto exchange Coinbase has issued an urgent warning to the crypto community following the debut of Coinbase Wrapped BTC, or cbBTC.

Starting today, Coinbase is rolling out cbBTC – Coinbase Wrapped BTC – an ERC20 token backed 1:1 by Bitcoin (BTC) held by Coinbase. At its launch, cbBTC will be supported on Base and Ethereum, with plans to support more chains.

Coinbase’s warning highlights the presence of fraudulent actors attempting to take advantage of the cbBTC launch. In its tweet, Coinbase alerted users to fraudulent actors pretending to be cbBTC.

There are many fraudulent actors pretending to be cbBTC. The contract addresses for cbBTC are:
Base: 0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf
Ethereum: 0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf

Learn more ↓https://t.co/mMXvAD4gQr

— Coinbase 🛡️ (@coinbase) September 12, 2024

Coinbase went on further to share the right contract addresses for the newly launched cBTC token on Ethereum and Base, the two blockchains on which it is currently issued.

The warning from Coinbase highlights the importance of vigilance and the need to verify contract addresses to avoid falling victim to this type of scam.

cbBTC debuts on-chain

Coinbase has kickstarted a new era for DeFi with the newly launched cbBTC — a wrapped version of Bitcoin backed 1:1 by BTC held in custody by Coinbase.

This would be the first instance for Coinbase to link deep off-chain Bitcoin liquidity to low-cost, high-speed financial rails on Base and Ethereum.

Wrapped assets, such as cbBTC, are projected to contribute to the development of a more efficient, linked and broader financial ecosystem by bringing assets across many chains.

Coinbase’s cbBTC aims to increase economic freedom by providing users with more options for using their Bitcoin.

There will be no separate order book or trading pair for cbBTC on Coinbase. When Coinbase users transfer BTC from Coinbase to an address on Base or Ethereum, the BTC is automatically converted 1:1 to cbBTC. When consumers receive cbBTC into their Coinbase accounts, it is converted 1:1 to BTC.

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