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Crypto Twitter calls for calm after wETH insolvency joke goes viral

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An inside joke about the breakup of wrapped Ethereum (wETH) over the weekend led influencers to explain it was just shit after community members took it for real.

FUD (Fear, Uncertainty, Doubt) regarding wETH’s bankruptcy appears to have started circulating on November 26, with the false claim that wETH is not 1:1 supported by Ether (ETH) and is insolvent. Rumors are circulating.

A blockchain developer and contributor to the ERC-721A token standard ‘cygaar’, he was one of the first to spread the joke, but in subsequent posts, no one read his content. I confirmed that it was actually “shit” to see if it was.

Actually the day before, cygaar murmured WETH will never go bankrupt, WETH will always be 1:1 swappable with ETH.

The Ethereum bull, host of The Daily Gwei Anthony Sassano, also joined the wETH joke in his own parody post on Nov. 27, but after reading the reply, he realized that the first post was “shit/meme.” I had to reveal later that it was.

Gnosis co-founder Martin Kppelmann tweeted on November 27th to his 38,800 Twitter followers that wETH is no longer fully supported by ETH and that we will soon be redeeming WETH. Banks could be executed,” he said.

Hours later, he said he hoped the joke “won’t cause too much confusion,” and linked to a thread explaining the joke for those who don’t know.

Related: What is Wrapped Ethereum (wETH) and how does it work?

Marcus Thielen, head of research at crypto financial services platform Matrixport, confirmed to Cointelegraph that WETHs silly posts have little or no truth.

He explained that the logic of wETH is automated by smart contracts and not controlled by a centralized entity.

WETH is a smart contract and not stored on a centralized exchange, so I’m not too worried about it. Smart contracts are open source, so you can check for bugs and flaws.

Meanwhile, FTX’s Nov. 11 bankruptcy filing does not show BTC in FTX’s balance, citing rumors that FTX may have printed 100,000 wBTC out of nowhere, citing the recent Wrapped Bitcoin ( wBTC) could be justified, Thielen said. sheet.

WBTC is completely different and the concerns here are valid, explained Thielen.

wETH is a wrapped version of ETH pegged at a 1:1 ratio and aims to solve interoperability issues for Ethereum-compatible blockchains by allowing ERC-20 tokens to be exchanged more easily. purpose.

Since ETH follows various rules and cannot be traded directly with ERC-20 tokens, wETH was introduced as an ERC-20 token on the Ethereum network.

Despite the lighthearted humor behind the joke, “Danclad Feist” addressed his 15,500 Twitter followers in a November 27 tweet, saying the comment “may not be obvious to outsiders.” , suggested that it should be marked “more clearly as a joke”.

Wes The current price is $1,196 and the current ratio is 0.999:1. ethereum, According to data from Coinmarketcap.