Wrapped Ethereum Insolvency Joke Infuriated Twitter Community

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.

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.

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.

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.

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:

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