u.today
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.
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.