wETH FUD was part of an inside joke only

On Nov 28, 2022

Crypto leaders confirmed that they were only fooling people with “wETH FUD” Twitter posts and further clarified that it is a decentralised & open-source protocol, not centralised.

Wrapped ETH (wETH) is an Ethereum (ETH) in a wrapped form which has multiple benefits like the direct, seamless exchange between ether and ERC-20 tokens without the need for a trusted third party and without incurring unnecessary risks such as unexpected issues during transactions resulting from complex implementations.

On 27 November, a Few crypto influencers started a meme/joke shit post on wETH, which further created a real level of panic among the crypto investors with wETH as the next collapse project.

Cygaar, a Blockchain developer and contributor to the ERC-721A token standard, said that wETH is about to insolvency and confirmed that he will buy each wETH for 0.5ETH to save space.

A high level of panic & response tweets showed that the majority of the crypto investors got into fear. Further cygaar confirmed that it was only a post.

This is really a test to see who’s been reading my content.
— cygaar (@0xCygaar) November 26, 2022

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Anthony Sassano, a popular Ethereum supporter & host of The Daily Gwei, also started a joke tweet post about FUD but later confirmed that it was all about a part of a joke.

Initially, he tweeted that a trusted person to him confirmed that wETH will depeg & collapse. But later he clarified that it was a shit post & not more than a joke.

Reading the replies I feel like I should clarify

This is a shitpost/meme – there is nothing wrong with WETH and you can always redeem 1 ETH for 1 WETH

Though if you don't believe me I'll buy all of your WETH right now for 0.3 ETH

Sell me all you want

Then go fuck off
— sassal.eth 🦇🔊 (@sassal0x) November 27, 2022

Markus Thielen, the head of research at crypto financial services platform MatrixPort, explained the panic of wETH de-pegging FUD an interview with Cointelegraph and said that wETH is based on a smart contract which is fully decentralised & there is no centralised party. He also said that wETH users can swap their wETH to ETH by 1:1 anytime they want.

“I am not too concerned about WITH as it’s a smart contract and not stored by a centralised exchange. Since the smart contract is open source, it can be checked for bugs or flaws.”