Coinbase on the Move: Wrap Up XRP and Dogecoin on Base
Coinbase Introduces Wrapped Versions of XRP and DOGE on Base Network - Could Bring Positive Developments?
Jump on the Ethereum-based layer-2 network with Coinbase's latest move! The crypto juggernaut has unveiled wrapped versions of XRP and Dogecoin, aptly named cbXRP and cbDOGE, respectively.
In a series of Twitter posts, Coinbase Assets X shed light on the new arrivals, assuring a 1:1 reserve of the underlying assets in their custody for these wrapped tokens. The cbXRP and cbDOGE now offer cross-chain compatibility, enabling users to interact with applications on the Base network.
The total supply of cbDOGE stands at 10.4 million, worth a whopping $1.88 million based on Dogecoin's price at the time of writing. On the other hand, at least 2.3 million cbXRP tokens float around, representing more than $5 million. To avoid scammers, Coinbase has shared the Base contract addresses for both cbXRP and cbDOGE.
The wrapped tokens party doesn't stop there! Coinbase plans to launch similar versions for Cardano (ADA) and Litecoin (LTC) in the upcoming weeks. Having already issued Wrapped Bitcoin (cbBTC) and Wrapped Ether (cbETH), Coinbase is steadily expanding its market for wrapped tokens, especially after the successful debut of cbBTC on Base and Ethereum in mid-2024.
Coinbase: Soaring Highs and Looming Low
With a market capitalization of at least $4.7 billion, cbBTC occupies the third-largest wrapped bitcoin spot in the market, trailing behind Binance's wrapped BTC (BTCB) and BitGo's WBTC. This latest achievement comes swiftly after Coinbase made history by becoming the first crypto company to join the S&P 500 stock market index and acquiring Deribit, the leading crypto derivatives platform, for $2.9 billion.
However, as Coinbase celebrates these major victories, it grapples with formidable challenges. A massive data breach shook the crypto world in late 2024, affecting at least 69,461 customers. The incident compromised user data, support infrastructure, and could lead to financial losses up to $400 million. As the company grapples with this setback, it comes under the microscope for failing to disclose the breach promptly.
[1] Stealing customer data threatens trust in security measures.[2] Stolen data can be used for social engineering attacks.[3] Legal action in the form of a class-action lawsuit adds to the woes.[4] Potential investigations by the SEC loom on the regulatory horizon.[5] The breach cost Coinbase between $180 million to $400 million to fix and reimburse customers.
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- The recent launch of wrapped versions of XRP and Dogecoin, named cbXRP and cbDOGE, respectively, by Coinbase, demonstrates their commitment to expanding their market for wrapped tokens, which also includes Wrapped Bitcoin (cbBTC) and Wrapped Ether (cbETH).
- Despite soaring highs, as Coinbase prepares to launch wrapped versions of Cardano (ADA) and Litecoin (LTC), it faces daunting challenges, including a massive data breach in late 2024 affecting over 69,000 customers, compromising user data, support infrastructure, and potentially leading to financial losses up to $400 million.
