Coinbase Wallet's New Messaging Feature Sparks Security Fears: "A Direct Line for Scammers"?

Encrypted Chats and Mini Apps Coming Soon

Hold onto your hats, crypto fans! Coinbase Wallet, the non-custodial wallet from the powerhouse exchange Coinbase, is about to roll out a feature that's got everyone talking. But not all the buzz is good - some top security experts are sounding the alarm, warning it could be a new playground for scammers to hit up users.

Coinbase Wallet isn't just aiming to be a place to store your coins anymore. Nope, they're gunning for "super app" status with this bold new move. But with great power comes great responsibility, and some are saying Coinbase might be biting off more than it can chew.

Get ready for secure, encrypted messaging in the new Coinbase Wallet, powered by XMTP. We're talking DMs and group chats that are about to go next-level. You'll be able to:

• Chat with AI agents
• Make trades in real-time
• Use mini apps right in the chat

In a hot-off-the-presses announcement on X, the Coinbase Wallet crew spilled the beans that users will soon be able to slide into DMs and group chats with "encrypted messaging" powered by the XMTP protocol. And that's not all - they're bringing mini apps into the chat too, looking to muscle in on Telegram's turf.

Security Experts Raise Red Flags

But hold up - not everyone's popping the champagne over this update. MetaMask's head of security Taylor Monahan straight-up called out Coinbase on X, saying they've been dropping the ball on stopping scammers from taking over user accounts for over a year.

"Coinbase instead decided to build a feature that gives scammers a direct, encrypted line to all their wallet users," Monahan slammed. Ouch.

Monahan's not the only one waving a big red flag. The infamous blockchain sleuth ZachXBT has been on Coinbase's case for ages about their weak sauce when it comes to fighting social engineering scams. In a recent Telegram rant, they pointed out that "no other major exchange has the same problem." Yikes.

And as of right now, Coinbase hasn't clapped back at the critics. The clock's ticking, Coinbase - the crypto world is watching.