Crypto Twitter calls for calm when wETH financial condition joke goes viral

Ethereum bull Anthony Sassano and Gnosis co-founder Martin Köppelmann were among those explaining later that the Wrapped Ethereum (wETH) FUD was a part of an inside joke.

An inside joke concerning the “insolvency” of Wrapped Ethereum (wETH) over the weekend has forced influencers to elucidate it absolutely was simply a “shitpost” when members of the community took it as real.

The wETH financial condition FUD (fear, uncertainty and doubt) ostensibly began to form the rounds on Nov. 26, with false rumors alleging that wETH isn’t backed 1:1 by Ether (ETH) and is insolvent.

Blockchain developer and contributor to the ERC-721A token normal “cygaar” was one amongst the primary to unfold the joke, before confirming in an exceedingly future post that it absolutely was in reality a “shitpost” to check who was reading his content.

In fact, a day before, cygaar tweeted that “WETH cannot ever go insolvent” and “WETH can continuously be swappable 1:1 with ETH.”

Ethereum bull and host of The Daily Gwei Anthony Sassano conjointly joined in on the wETH joke along with his own parody post on Nov. 27, however had to clarify later that the initial post was “shitpost/ meme” when reading the replies.

Gnosis co-founder Martin Köppelmann was another one to induce in on the joke, claiming in an exceedingly Nov. 27 Tweet to his 38,800 Twitter followers that wETH is not any longer totally backed by ETH which “we would possibly see a bank withdrawal on redeeming WETH soon.”

Hours later, he aforesaid he hoped the joke “did not cause an excessive amount of confusion,” linking to a thread that explained the joke for those that weren’t in the know.

Speaking to Cointelegraph, Markus Thielen, the head of analysis at crypto monetary services platform Matrixport has conjointly confirmed that there’s very little to no truth to the WETH “shitposts.”

wETH’s logic is automated by sensible contracts and it isn’t controlled by a centralized entity, he explained:

“I am not too concerned about WETH as it is a smart contract and not held on by a centralized exchange. Since the sensible contract is open supply, it will be checked for bugs or flaws.”

On the opposite hand, recent FUD against Wrapped Bitcoin (wBTC) might be bonded, aforesaid Thielen, concerning rumors that FTX could have written a 100,000 wBTC out of nothingness, as FTX’s Nov. 11 bankruptcy filing doesn’t show any BTC on FTX’s record.

“WBTC is totally totally different and here the considerations are valid,” Thielen explained.

wETH could be a wrapped version of ETH that’s pegged at a 1:1 quantitative relation, that aims to resolve ability problems on Ethereum-compatible blockchains by granting ERC-20 tokens to be changed additional simply.

wETH was introduced as an ERC-20 token on the Ethereum network for this reason, as ETH follows totally different rules and so can not be directly listed with ERC-20 tokens.

Despite the lightsome humor behind the jokes, “Dankrad Feist” advised his 15,500 Twitter followers in an exceedingly Nov. 27 Tweet that the comments ought to be marked “more clearly as jokes” because it “may not be obvious to outsiders.”

wETH is presently priced at $1,196, at a current quantitative relation of 0.999:1 to ETH, in keeping with knowledge from Coinmarketcap.