Justin Sun and Vitalik Buterin Join wETH Insolvency Joke, Market Crashes

VItalik Buterin and Justin Sun next to huge white question mark

The crypto market is in the red zone today after crypto entrepreneurs Justin Sun and Vitalik Buterin joined the insider joke of wrapped Ethereum’s (wETH) insolvency that went viral over the weekend. 

The wETH Insolvency Joke

On Sunday, November 27th, blockchain and ERC-721A developer ‘cygaar’ took to Twitter to make claims that wETH would soon be insolvent. He tweeted:

The joke caught more attention after Ethereum bull Anthony Sassano reacted to cygaar, stating “A person I have known for more than ten years ... I don’t know anything concrete, but if I were exposed, I would be concerned.”

Sun and Buterin Join In on the Joke

Since a great portion of the crypto community was unaware of the joke, it quickly turned into FUD. Justin Sun and Vitalik Buterin, founders of Ethereum and Tron, have also joined the insolvency joke.

Joining in and citing a tweet about wETH’s  “insolvency”, Sun said he had “discussed with my BFF Vitalik Buterin and together we will invest $2b into WEF to recover all the funds.”

Buterin, replying to Sun, said wETH and WEF sound very similar. Crypto users on Twitter, who have failed to understand that the $2 billion for WEF (World Economic Forum) is part of the joke, have asked if “we’re buying WEF Coin?”

The Crypto Market Loses Ground

After remaining relatively stable over the weekend, the crypto market has lost ground as the FUD spreads.  Bitcoin and Ethereum dropped by over 3% and 4%, with Huobi Token being the biggest loser with -12% in the last 24 hours.

On the Flipside

  • Cygaar has confirmed that wETH will not be unpegged and will always be redeemable 1:1 to ETH and it was a “sh*tpost” to see who was reading his content.

Why You Should Care

The FUD surrounding wETH shows how easily the crypto market reacts to news and the effect crypto influencers have on the market.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia