Ethereum Insiders Wrap Up the Ethereum Insolvency FUD

On November 26, growing concerns began to circulate about Wrapped Ethereum (WETH) being untraceable from ETH. Some speculated that WETH was not backed 1:1 by ETH, leading to bankruptcy fears. Ethereum developers and influencers step in to end the situation, calling it FUD,

The recent price correction caused by the collapse of FTX has added to the fear and uncertainty within the already rocky cryptocurrency industry. Speculation can inject further anxiety, as is the case here.

An alleged joke about the bankruptcy of Wrapped Ethereum was trending over the weekend. Blockchain and ERC-721A developer ‘Cygar’ claimed on Twitter on November 27 that WETH would soon go bankrupt:

Following this, Ethereum bull and Daily GVE host Anthony Sassano jumped in, by stating,

“A person I have known for over ten years, whom I consider trustworthy, is convinced that WETH will collapse and experience a total collapse. I don’t know anything concrete, but if I was exposed, I would Will worry

ETH influencers call for calm

Despite speculation running rampant following these comments, many supporters and ETH influencers downplayed the concerns. In later posts, cigars Confirmed It was a “sh*tpost” to see who was reading his stuff.

He later added in a series of threads that “WETH may never go bankrupt” and that “WETH will always be 1:1 swappable with ETH.”

Meanwhile, Sasano also referred to his initial post as a “sh*tpost/meme” after reading the replies.

he even went apologize For the community to inject fear:

“I sincerely apologize for my WETH sh*tposting. I honestly thought it was harmless and people weren’t going to take it seriously (my bad for thinking that). Will do better in the future.”

Other influencers also added their own narratives to clear up the uncertainties surrounding the false rumours. including co-founder of Gnosis Martin Koppelman And dankrad feastA fellow ETH researcher.

Rumors vs Facts

Wrapped Ethereum is a smart contract that accepts ETH and gives back an ERC-20 token called “WETH”, a wrapped version of ETH pegged at a 1:1 ratio. It aims to solve interoperability issues on Ethereum-compatible blockchains by allowing ERC-20 tokens to be exchanged more easily.

wETH price on BeInCrypto in a month
Source: BeInCrypto Price

In terms of valuation, WETH stands at $1,174.69 at a 0.999:1 ratio for ETH after a 3.71% decline over the past 24-hours.


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