The rumor for wETH crypto took a heavy fall.
On 26th November a false rumor was being spread in the crypto world about the insolvency of Wrapped Ether(wETH). The allegations got so serious that the influencers had to interrupt and confirmed that it was a ‘shitpost’. Cygaar who is the backer of ERC-721A and is also a blockchain developer was the one who initiated this joke. to check who was reading his stuff, he later acknowledged that it was a “shitpost.” furthermore a day before this incident happen cygaar tweeted that WETH cannot ever go insolvent” and that “WETH will always be swappable 1:1 with ETH.”
Anthony Sassano, an Ethereum bull and the host of The Daily Gwei, too participated in the wETH joke with his parody post on November 27. However, after reading the comments, he had to clarify that the original post was a “shitpost/meme.”
Martin Köppelmann, a co-founder of Gnosis, joined in on the joke as well, tweeting to his 38,800 followers on November 27 that wETH is no longer entirely backed by ETH and warning that “we might see a bank run on redeeming WETH shortly”
A few hours later, he expressed his hope that the joke “did not cause too much confusion,” and he included a link to a post where the joke was explained to those who weren’t aware of it.
What and how does wrapped Ethereum (wETH) operate?
Ethereum is frequently referred to as a platform for distributed computing. Imagine the Ethereum blockchain as a vast computer network on which programmers may create decentralized programmes (dApps), which are capable of performing almost anything a standard computer programme can.
The contract’s conditions and regulations are written on the blockchain in these self-executing programmes, which make execution and settlement automatic, traceable, and irreversible.
Ether often powers Ethereum’s dApps and smart contracts, but not all of them connect perfectly with Ether.
WETH makes it possible for ETH to work with all dApps and smart contracts. WETH and ETH can be exchanged 1:1, or “wrapped,” in Ethereum lingo, and ETH can be converted to WETH and back at any moment. There are no additional costs outside transaction fees.