Wrapped tokens are gaining traction in the crypto world for their ability to bridge gaps between blockchain networks and improve liquidity. These tokens represent a variety of assets, including cryptocurrencies, stablecoins, and NFTs, and enable cross-chain interoperability and decentralized finance (DeFi) applications. Examples include Wrapped Bitcoin (wBTC) and Wrapped Ether (wETH), which allow users to access Ethereum-based DeFi protocols and decentralized exchanges. However, wrapped tokens also have limitations, such as centralization risks, complexity, regulatory concerns, and restricted asset compatibility. Despite these drawbacks, they remain crucial for fostering a more connected and dynamic crypto economy.