Ethereum bull Anthony Sassano and Gnosis co-founder Martin Keppelman were among those who explained that the later covered Ethereum (wETH) FUD was part of an inside joke.
The Ether (wETH) “bankruptcy” joke ended over the weekend, forcing influencers to explain that it was just “bullshit” after community members took it literally.
WETH Bankruptcy FUD (Fear, Uncertainty, Doubt) started circulating on November 26th, with false rumors claiming that wETH is not backed by Ether (ETH) 1:1 and is bankrupt.
Blockchain developer and contributor to the ERC-721A token standard Cigar was one of the first to spread the joke, before confirming in a follow-up post that its content was “bullshit” to see who would read it.
In fact, a day ago, Zigar tweeted that “WETH can never go bankrupt” and “WETH will always exchange 1:1 with ETH.”
The Daily Guy Anthony Sassano and The Daily’s Ether Bull got in on the wETH joke with his own parody post on November 27, but later had to clarify that the original post was “bullshit/meme” after reading the response.
Gnosis co-founder Martin Keppelman was another in on the joke, telling his 38,800 Twitter followers on November 27 that wETH no longer has full support for ETH and that “we may see the bank bring WETH back soon. .”
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A few hours later, he said he hoped the joke “didn’t cause too much confusion” and linked to a thread explaining the joke for the uninitiated.
Related: What is Wrapped Ethereum (wETH) and how does it work?
Speaking to Cointelegraph, Markus Thielen, head of research at crypto-financial services platform Matrixport, also confirmed that there is no truth to “WETH bullshit.”
The logic of wETH is automated by smart contracts and is not controlled by a centralized entity, he explained:
“I’m not too worried about WETH because it’s a great deal and it’s not powered by a centralized exchange. Since the smart contract is open source, it can be tested for bugs or flaws.
On the other hand, the recent FUD against wrapped Bitcoin (wBTC) is justified, Thielen said, referring to rumors that FTX may have printed 100,000 wBTC out of thin air, since no Bitcoin was shown in FTX’s November 11 bankruptcy filing.
In FTX’s balance sheet.
“WBTC is completely different, and the concerns here are valid,” Thielen explained.
wETH is an encapsulated version of ETH pegged at a 1:1 ratio and aims to solve interoperability issues in Ethereum-compatible blockchains by enabling easier exchange of ERC-20 tokens.
For this reason wETH was introduced as an ERC-20 token on the Ethereum network, ETH follows different rules and cannot be directly traded with ERC-20 tokens.
Despite the lighthearted humor behind the jokes, Dankrad suggested to his 15,500 Twitter followers on Nov. 27 that Feist mark the comments as “funnier” because “it won’t be obvious to outsiders.”
Update 22:45 UTC, November 28 Removed the sentence citing Coinmarketcap data regarding the price relationship between WETH and ETH.