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Ethereum Insiders Settle Wrapped Ethereum (WETH) Insolvency FUD

2 mins
Updated by Kyle Baird
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In Brief

  • Rising concerns began circulating on Nov. 26 regarding Wrapped Ethereum (WETH) insolvency fears.
  • Crypto Twitter calls for calm after wETH insolvency joke goes viral.
  • WETH is currently priced at $1,174 at a current ratio of 0.999:1 to ETH.
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Rising concerns began circulating on Nov. 26 regarding Wrapped Ethereum (WETH) becoming unpegged with ETH. Some speculated that WETH wasn’t backed 1:1 by ETH, which gave rise to insolvency fears. Ethereum developers and influencers stepped in to conclude the situation, calling it FUD.

Recent price corrections triggered by the collapse of FTX exacerbated fears and uncertainty within the already-rocky cryptocurrency industry. Speculation can inject further anxiety, as is the case here. 

An alleged joke regarding the insolvency of Wrapped Ethereum was trending over the weekend. Blockchain and ERC-721A developer ‘cygaar’ took to Twitter on Nov. 27 to make claims that WETH would soon be insolvent:  

Following this, Ethereum bull and Daily Gwei host Anthony Sassano jumped in, stating

“A person I have known for more than ten years, who I consider trustworthy, is convinced that WETH will depeg and experience a total collapse. I don’t know anything concrete, but if I were exposed, I would be concerned.” 

ETH influencers say to keep calm

Despite the speculation running amok after these comments were made, many proponents and ETH influencers disregarded the concerns. In a subsequent post, cygaar confirmed that it was a “sh*tpost” to see who was reading his content.

They later added in a series of threads that “WETH cannot ever go insolvent” and “WETH will always be swappable 1:1 with ETH.”

Meanwhile, Sassano also referred to his initial posts as “sh*tpost/ meme” after reading the replies. 

He even went on to apologize to the community for injecting fear: 

“I sincerely apologize for my WETH sh*tposting I honestly thought it was harmless and that people weren’t going to take it seriously (my bad for thinking this). Will do better in the future.” 

Other influencers also added their narratives to offset uncertainties around the false rumors. Including Gnosis co-founder Martin Köppelmann and Dankrad Feist, a fellow ETH researcher. 

Rumors vs. Facts 

Wrapped Ethereum is a smart contract that accepts ETH and gives back an ERC-20 token called “WETH,” a wrapped version of ETH pegged at a 1:1 ratio. It aims to solve interoperability issues on Ethereum-compatible blockchains by allowing ERC-20 tokens to be exchanged more easily.

wETH price on BeInCrypto over the one month
Source: BeInCrypto Price

In terms of valuation, WETH currently stands at $1,174.69 at a ratio of 0.999:1 to ETH after witnessing a 3.71% decline in the last 24 hours. 


In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

Shubham Pandey
An engineer and an accountant by degree, Shubham ventured into the crypto world to pursue his passion. He believes digital currencies will redefine our economies in the decades to...