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Wrapped Ethereum Insolvency Joke Infuriated Twitter Community

Harold - Coincu
2022-11-28 06:27
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Following rumors about the “insolvency” of Wrapped Ethereum (wETH) over the weekend, influencers have confirmed it.
The wETH insolvency FUD started spreading on November 26, with false reports claiming that Wrapped Ethereum is not backed 1:1 by Ether (ETH) and is bankrupt.
cygaar, a blockchain developer and contributor to the ERC-721A token standard, was among the first to propagate the joke before revealing in a subsequent post that it was a “shitpost” to check who was reading his stuff.
This is really a test to see who’s been reading my content.
— cygaar (@0xCygaar) November 26, 2022
In reality, only a day prior, cygaar said unequivocally that WETH would never be bankrupt and that the token would always be interchangeable 1:1 with ETH.
Fun fact: WETH cannot ever go insolvent. Your WETH will always be swappable 1:1 with ETH.The code and logic is quite simple. In fact, it only takes 60 lines of code to implement.Here's a simple primer on how WETH works :
— cygaar (@0xCygaar) November 25, 2022
Anthony Sassano, the host of The Daily Gwei, too, got in on the wETH joke on November 27 but had to clarify later that the first post was a “shitpost/ meme” after reading the reactions.
Cause it's not real. May wanna stop following dude for a while seems he's gonna drop a bunch of these in an already confusing time.
— CryptoTulpa.PLS (@ReikiRekt) November 27, 2022
Martin Köppelmann, the co-founder of Gnosis, also joined in on the joke, alleging in a tweet that wETH is no longer completely backed by ETH, however again, it was just a joke, and he also linked to a post that explained the joke to those who weren’t aware.
I hope this joke did not caused too much confusion. If you need more context find it here:
— Martin Köppelmann (@koeppelmann) November 27, 2022
Jokes can bring joy to others, but not always. Jokes like the above will most likely make the community fall into anxiety when holding Wrapped Ethereum and Dankrad Feist, a fairly well-known person in the crypto world, has said that it is not advisable:
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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