The cryptocurrency market reacted negatively to the joke about the insolvency of Ethereum (wETH) and went into the red zone after it was supported by the founder of the Tron project and the co-founder of Ethereum.
It all started when a blockchain and ERC-721A developer under the pseudonym Cygaar published a joke on Twitter over the weekend that wETH, an Ethereum-based ERC-20 token, would soon become insolvent.
ATTENTION: WETH is about to be insolvent.
I will begrudgingly bail out anyone holding WETH at a rate of 0.5 ETH per WETH in order to save this space. You can thank me once the crisis has been announced.
— cygaar (@0xCygaar) November 26, 2022
Cygaar immediately clarified that this was a prank to see if anyone was paying attention to his posts on the social network.
However, Cygaar’s joke went viral, especially after Tron founder Justin Sun and Ethereum co-founder Vitalik Buterin supported it.
Quoting a tweet about “wETH’s insolvency”, Justin Sun wrote that he “discussed the situation with my best friend Vitalik Buterin and together they are investing $2 billion in WEF to get all the funds back.”
As a humble member of the crypto industry, I personnally have discussed with my BFF @VitalikButerin and together we will invest $2b into WEF to recover all the funds. stay #SAFU! stay strong! https://t.co/UmjtljyRNz
— H.E. Justin Sun
At the same time, a significant part of the crypto community did not pay attention to the fact that Justin Sun actually has the abbreviation of the World Economic Forum (The World Economic Forum), and not the name wETH.
As a result, the outwardly harmless Cygaar rally caused nervousness in the cryptocurrency market and acquired signs of panic. On Monday, November 28, as information spread among members of the crypto community, bitcoin and ether fell in price by more than 3% and 4%, respectively.
BTC broke through $16,500 support to trade at $16,174, while ETH fell below $1,200 and is currently trading at $1,172. negative news.
Earlier, popular cryptocurrency analyst Benjamin Cowen said that bitcoin and other digital assets could soon go up, but it is more reasonable to expect a repeat of the 2018 scenario.
Source: Bits
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