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wETH Insolvency Joke Made Headlines, Crypto Twitter Urges Restraint

wETH Insolvency Joke Made Headlines, Crypto Twitter Urges Restraint
  • One of the first to propagate the joke was blockchain developer “cygaar.”
  •  Markus Thielen,confirmed that the wETH “shitposts” are largely untrue.

Crypto Influencers were compelled to clarify that an inside joke regarding Wrapped Ethereum’s (wETH) “insolvency” over the weekend was just a “shitpost” after some members of the community mistook it for the truth. On November 26, false rumors claiming that wETH is insolvent and not backed 1:1 by Ether (ETH) started to circulate. This is known as wETH insolvency FUD (fear, uncertainty, and doubt).

No Truth to the wETH “Shitposts”

Cygaar, a blockchain developer and contributor to the ERC-721A token standard, stated that “wETH will always be swappable 1:1 with ETH” and “wETH cannot ever go insolvent.” Anthony Sassano, an Ethereum bull and the host of The Daily Gwei, similarly parodied the wETH joke on November 27 but later had to clarify that the original post was a “shitpost/meme” after reading the comments. According to certain reports, Markus Thielen, the head of research at the cryptocurrency financial services platform Matrixport, has also confirmed that the wETH “shitposts” are largely untrue. 

The goal of wETH is to address interoperability difficulties on Ethereum-compatible blockchains by making it easier to interchange ERC-20 tokens. It is a wrapped version of ETH that is pegged at a 1:1 ratio. ETH operates under a different set of regulations and cannot be directly traded with ERC-20 tokens, wETH was first issued as an ERC-20 token on the Ethereum network. wETH’s price as of right now is $1,173 as per CoinMarketCap.

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