1 year ago
An wrong gag astir the “insolvency” of Wrapped Ethereum (wETH) implicit the play has forced influencers to explicate it was conscionable a “shitpost” aft members of the assemblage took it arsenic real.
The wETH insolvency FUD (fear, uncertainty and doubt) seemingly began to marque the rounds connected Nov. 26, with mendacious rumors alleging that wETH isn’t backed 1:1 by Ether (ETH) and is insolvent.
Blockchain developer and contributor to the ERC-721A token modular “cygaar” was 1 of the archetypal to dispersed the joke, earlier confirming successful a consequent station that it was successful information a “shitpost” to spot who was speechmaking his content.
This is truly a trial to spot who’s been speechmaking my content.
— cygaar (@0xCygaar) November 26, 2022In fact, lone a time before, cygaar tweeted that “WETH cannot ever spell insolvent” and that “WETH volition ever beryllium swappable 1:1 with ETH.”
Ethereum bull and big of The Daily Gwei Anthony Sassano besides joined successful connected the wETH gag with his ain parody station connected Nov. 27, but had to clarify aboriginal that the archetypal station was “shitpost/ meme” aft speechmaking the replies.
Reading the replies I consciousness similar I should clarify
This is simply a shitpost/meme - determination is thing incorrect with WETH and you tin ever redeem 1 ETH for 1 WETH
Though if you don't judge maine I'll bargain each of your WETH close present for 0.3 ETH
Sell maine each you want
Then spell fuck off
Gnosis co-founder Martin Köppelmann was different 1 to get successful connected the joke, claiming successful a Nov. 27 Tweet to his 38,800 Twitter followers that wETH is nary longer afloat backed by ETH and that “we mightiness spot a slope tally connected redeeming WETH soon.”
Hours later, helium said helium hoped the gag “did not origin excessively overmuch confusion,” linking to a thread that explained the gag for those who weren't successful the know.
I anticipation this gag did not caused excessively overmuch confusion. If you request much discourse find it here:https://t.co/KDN3NvdO2z
— Martin Köppelmann (@koeppelmann) November 27, 2022Related: What is wrapped Ethereum (wETH) and however does it work?
Speaking to Cointelegraph, Markus Thielen, the caput of probe astatine crypto fiscal services level Matrixport has besides confirmed that determination is small to nary information to the WETH “shitposts.”
wETH’s logic is automated by astute contracts and it isn’t controlled by a centralized entity, helium explained:
“I americium not excessively acrophobic astir WETH arsenic it's a astute declaration and not stored by a centralized exchange. Since the astute declaration is unfastened source, it tin beryllium checked for bugs oregon flaws.”On the different hand, caller FUD against Wrapped Bitcoin (wBTC) could beryllium warranted, said Thielen, referring to rumors that FTX whitethorn person printed 100,000 wBTC retired of bladed air, arsenic FTX’s Nov. 11 bankruptcy filing does not amusement immoderate BTC connected FTX’s equilibrium sheet.
“WBTC is wholly antithetic and present the concerns are valid,” Thielen explained.
wETH is simply a wrapped mentation of ETH that is pegged astatine a 1:1 ratio, which aims to lick interoperability issues connected Ethereum-compatible blockchains by allowing for ERC-20 tokens to beryllium exchanged much easily.
wETH was introduced arsenic an ERC-20 token connected the Ethereum web for this reason, arsenic ETH follows antithetic rules and frankincense cannot beryllium straight traded with ERC-20 tokens.
Despite the lighthearted wit down the jokes, “Dankrad Feist” suggested to his 15,500 Twitter followers successful a Nov. 27 Tweet that the comments should beryllium marked “more intelligibly arsenic jokes” arsenic it “may not beryllium evident to outsiders.”
A batch of radical making jokes astir WETH.
Please beryllium alert it whitethorn not beryllium evident to outsiders that it's wholly antithetic from bridged assets and determination is virtually astir zero risk. I deliberation it would beryllium amended to people these much intelligibly arsenic jokes.
wETH is presently priced astatine $1,196, astatine a existent ratio of 0.999:1 to ETH, according to information from Coinmarketcap.
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