Coinbase Issues Important Warning Ahead of Tokenized Bitcoin Launch

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

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

Coinbase warning highlights scammers attempting to exploit cbBTC launch. In a tweet, Coinbase warned users about scammers posing as cbBTC.

Coinbase has gone further and shared the correct contract addresses for the newly launched cBTC token on Ethereum and Base, the two blockchains it is currently issued on.

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

cbBTC debuts on the network

Coinbase has ushered in a new era of DeFi with its newly launched cbBTC, a secure version of Bitcoin backed 1:1 by BTC stored on Coinbase.

This will be the first time that Coinbase will connect Bitcoin's deep off-chain liquidity with the low-cost, high-speed financial rails of Base and Ethereum.

Wrapped assets like cbBTC are expected to contribute to the development of a more efficient, connected and broader financial ecosystem by pooling assets across multiple chains.

Coinbase's cbBTC project aims to increase economic freedom by giving users more options for using their bitcoins.

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 in their Coinbase accounts, it is converted 1:1 to BTC.