Cryptocurrency exchange Coinbase has issued a formal warning for Cardano (ADA) and Litecoin (LTC) holders regarding the launch of new tokens on the Base platform.
Coinbase’s Warning for Altcoin Holders
Coinbase has issued a warning about potential fakes of the cbADA and cbLTC tokens launched on the Base Layer-2 network. The exchange confirmed that it holds a 1:1 reserve for each token but cautioned users about the risk of fake contract addresses. Investors are advised to transact only with the official addresses mentioned in the announcement.
Recent Developments in the Base Ecosystem
On the Base platform, cbADA and cbLTC can be used as collateral, for yield farming, and for payments in decentralized applications. This allows ADA and LTC holders to participate in reward mechanisms without needing to sell their assets. Coinbase has updated its wallet to simplify transactions.
Market Condition Analysis
Current data reveals that over 11,300 wrapped LTC and 2.9 million wrapped ADA coins are already circulating in the network, with a total locked value reaching $3 billion. Rapidly growing pools create opportunities for scammers to siphon liquidity through fake token sales. Coinbase advises investors to verify contract codes before proceeding with transactions.
Coinbase's warning emphasizes the importance of checking contract addresses amid the rising threat of fraud. Users are strongly encouraged to exercise caution and attentiveness when dealing with new tokens.
