Coinbase Issues Emergency Warning on XRP and ADA as Scams Surge
Coinbase warns investors about fake versions of XRP, ADA, and DOGE on its Base Layer-2 network amid a worrying rise in scam activity. It also releases official smart contract addresses to protect users.
Amid the rapidly evolving and volatile cryptocurrency market, Coinbase – a leading US-based crypto exchange – has issued an emergency warning regarding a growing wave of scams on its Base Layer-2 network. The move is aimed at protecting users from fake tokens of popular coins such as Ripple (XRP), Cardano (ADA), and Dogecoin (DOGE).
Coinbase Leads the Industry: Joining the S&P 500 and Expanding Wrapped Altcoins
Just last month, Coinbase made history by becoming the first crypto company to join the S&P 500 Index – a milestone that sent COIN stock up 24% in a single day. The move not only boosted Coinbase’s reputation in the traditional financial market but also opened the door to attracting billions of dollars from institutional investors.
Coinbase is expanding its ecosystem on the Base Layer-2 chain by preparing to release wrapped versions of XRP, ADA, DOGE, and Litecoin (LTC). These tokens will operate on Base Layer-1 through standardized smart contracts, enabling faster transactions and lower fees.
Warning about Fake Versions on Base L2
In a statement dated May 13, 2025, Coinbase’s asset team acknowledged:
“There may be scammers making false claims that cbADA, cbDOGE, cbDLTC, and cbzXRP are available for trading.”
The warning comes amid a surge in scam projects on the Base Layer-2 network, where hundreds of memecoins are released each week, most of which have no security audits. According to research from Cointelegraph, 91% of memecoins on Base L2 have at least one security risk feature, and nearly 17% are outright scams.
The Solution: Publish Official Smart Contract Addresses
To prevent scams, Coinbase has published official smart contract addresses for its upcoming wrapped tokens. This move not only demonstrates a commitment to protecting users, but is also a strategic move to reduce the losses of millions of dollars each month caused by scams.
The Downside
Currently, there is no official timeline for the release of cbXRP or cbADA tokens on Base L2. This has left some investors confused by the widespread wave of “copycat tokens”, while predictions about the launch are being exploited for fraudulent purposes.
Why it matters
Coinbase’s timely intervention in publicizing transparent information is a step to protect the community. In the risky world of crypto, disclosing smart contract addresses early can help investors avoid falling into scams, especially as scam projects become more sophisticated and prey on users’ FOMO (fear of missing out) psychology.
Conclusion:
Coinbase is not only expanding its Layer-2 ecosystem, but is also simultaneously building a hedge to protect investors from the growing risks in the market. The warning about XRP and ADA wrapped tokens is a clear reminder: in the Web3 world, information transparency and smart contract security are vital.