- The rumor that wrapped Ether (wETH) losing the peg with ETH caught investors in a grip of fear.
- Crypto influencers chipped in to clarify that the concerns around wrapped Ether (wETH) were just joke tweets.
Earlier today on Monday, November 28, strong rumors started circulating that wrapped Ether (wETH) has lost its peg, and the CEO of the Wrapped Ethereum Foundation (WEF) is looking to raise $2 billion in order to fill the hole.
As a result crypto watchers pointed out serious concerns around wrapped Ether. Technically, wrapped Ether or wETH is supposed to have the same value as Ether while allowing access to more applications.
— kinnif.weth (@0xkinnif) November 28, 2022
Soon as the talks surrounding wrapped Ether (wETH) started spreading, Tron founder Justin Sun weighed in. He added:
As a humble member of the crypto industry, I personnally have discussed with my BFF @VitalikButerin and together we will invest $2b into WEF to recover all the funds. Stay #SAFU! Stay strong!
However, some reports also mentioned that the concerns around wrapped Ether (wETH) and its “insolvency” stemmed from a Twitter joke post. As the wETH insolvency FUD (fear, uncertainty, and doubt) started to make the rounds, some influencers chipped in to explain that it was a shitpost.
Markus Thielen, head of research and strategy at crypto lender Matrixport explained that he isn’t concerned about wrapped Ether (wETH). This is because wETH is based on automatically executing software dubbed smart contracts. He added:
“This will make it unlikely to be actually manipulated as no person, nor a centralized entity, should be able to manipulate the open-source smart contract,” which can also be checked for bugs or flaws.
More crypto influencers call for calm
Cygaar, a blockchain developer and contributor to the ERC-712A token standard was among the first to spread the joke. However, he later confirmed in another tweet that it was a “shitpost”.
This is really a test to see who’s been reading my content.
— cygaar (@0xCygaar) November 26, 2022
Just a day before, Cygaar had posted that wETH can never go insolvent and that it will always be swappable 1:1 with ETH. Anthony Sassano, the host of The Daily Gwei, also joined in on the wETH joke with his own parody. However, later he replied adding: “Reading the replies I feel like I should clarify. This is a shitpost/meme – there is nothing wrong with WETH and you can always redeem 1 ETH for 1 WETH. Though if you don’t believe me I’ll buy all of your wETH right now for 0.3 ETH. Sell me all you want. Then go f*ck off”.
With all the lighthearted humor behind the jokes, Dankrad Feist tweeted to his 15,500 followers that comments should be marked “more clearly as jokes,” as it “may not be obvious to outsiders”.
A lot of people making jokes about WETH.
Please be aware it may not be obvious to outsiders that it's completely different from bridged assets and there is literally almost zero risk. I think it would be better to mark these more clearly as jokes.
— Dankrad Feist (@dankrad) November 27, 2022
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As of press time, wETH is currently trading at $1,163.03 at a current ratio of 0.999:1 to ETH.