Coinbase Wallet has announced the introduction of encrypted messaging and mini app integration in chats, expanding the service's functionality.
New Features of Coinbase Wallet
Coinbase Wallet is preparing to introduce encrypted messaging powered by the XMTP protocol, allowing users to send direct and group messages. The update will include access to mini apps directly within chats, expanding the wallet's functionality into communication and app integration. According to Coinbase Wallet's announcement, this feature is designed to enhance user interaction.
Concerns from Security Experts
Despite the enhanced communication tools, security professionals are raising concerns. Taylor Monahan, head of security at MetaMask, publicly criticized this move, noting that Coinbase has failed to curb ongoing scams targeting users. She mentioned that the new feature could provide scammers with encrypted access to users. Monahan's remarks are consistent with earlier warnings from blockchain investigator ZachXBT regarding Coinbase's security weaknesses.
User Risks
Experts warn that enabling encrypted communication within wallets could allow malicious actors to impersonate support or send phishing links. Since these messages are end-to-end encrypted, Coinbase would have limited visibility to detect or intervene in scams once they are initiated. Coinbase's announcement coincided with an 8 percent increase in its stock following news that it had become the first crypto firm added to the S&P 500 index.
The launch of new features in Coinbase Wallet raises important questions about user security, as experts warn of potential risks associated with encrypted communication.
