Non-Custodial Crypto Wallet Coinbase Wallet Is About to Launch a New Feature That Some Crypto Security Experts Warn Could Become a New Tool for Scammers to Target Users

Non-custodial crypto wallet Coinbase Wallet is about to launch a new feature that some crypto security experts warn could become a new tool for scammers to target users.

Coinbase Wallet, the cryptocurrency wallet developed by the Coinbase exchange, appears to be aiming for super app status with a new feature — though some security experts warn it could do more harm than good.

Secure, encrypted messaging is coming to the new Coinbase Wallet, powered by @xmtp_. DMs and group chats are about to get a whole lot more powerful.

– Talk with AI Agents– Make trades in real-time– Use mini apps directly in the chat

The update will apply to both direct messages and group chats. The team also said users will be able to access mini apps “directly in the chat,” signaling a push into the same territory as Telegram, which had introduced mini apps but later limited their development to those building on the TON network.

Kids steal >$50m every weekend via Coinbase CEX account takeovers.Coinbase has failed to understand, detect, or stop these for over a year.Coinbase instead decided to build a feature that gives scammers a direct, encrypted line to all their wallet users.Incredible.

While some users were excited about the update, security experts weren’t as thrilled. MetaMask‘s head of security Taylor Monahan called out Coinbase in a post on X, saying the company “has failed to understand, detect, or