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Wrapped Ethereum Insolvency Joke Gets Out of Control as Tron's Justin Sun Wants to Come to Rescue

Mon, 11/28/2022 - 07:55
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Alex Dovbnya
Tron founder Justin Sun has gotten in on inside joke about insolvency of Wrapped Ethereum (wETH)
Wrapped Ethereum Insolvency Joke Gets Out of Control as Tron's Justin Sun Wants to Come to Rescue
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Tron founder Justin Sun has picked up a new joke about Wrapped Ethereum (wETH), an ERC-20 compatible version of the second largest cryptocurrency, being insolvent.

Sun tweeted about rescuing the Wrapped Ethereum Foundation (WEF), pledging to invest $2 billion into the nonexistent entity, together with his "BFF" Vitalik Buterin. "Stay #SAFU! Stay strong!" the controversial entrepreneur tweeted.

The inside joke was started by a Twitter user, who goes by the handle of @0xCygaar. In a Nov. 26 tweet, which has collected more than 1,000 likes, the user claims that wETH is about to go insolvent before clarifying that the warning was sarcastic.

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Some prominent members of the Ethereum community started amplifying the hoax, with Anthony Sassano, co-founder of EthHub, claiming that wETH was about to experience a "total collapse." The user had to clarify that the tweet was simply a joke after reading a bunch of replies from some users who took the frivolous warning at face value.

In reality, it is virtually impossible for wETH to go insolvent since it will always be backed 1-to-1 by the second largest cryptocurrency due to its underlying mechanism.

As reported by U.Today, the Tron founder recently expressed his interest in buying the assets of the failed FTX exchange. Prior to that, he was willing to help rescue the platform as disgraced founder Sam Bankman-Fried was frantically looking for fresh funding.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.