Tron Founder’s WETH Insolvency Joke Lands Market into Frenzy

UTC by Sanaa Sharma · 3 min read
Tron Founder’s WETH Insolvency Joke Lands Market into Frenzy
Photo: Depositphotos

The markets, however, witnessed a significant sell-off due to the chaos created by the tweets regarding WETH’s insolvency.

Justin Sun, the founder of Tron, said on Monday that he and Ethereum co-founder Vitalik Buterin will sponsor $2 billion into the Wrapped Ethereum (WETH) Fund to rejuvenate the funds lost as wrapped Ethereum depegs. However, this statement was supposed to be a joke about WETH going insolvent. Other investing giants like Vitalik Buterin, Ethereum influencer Anthony Sassano, and Gnosis co-founder Martin Köppelmann, pitched in which led to the market-wide selloff in the crypto industry.

Tron founder, on November 28th, tweeted that he was planning to invest $ 2 billion in partnership with BFF Vitalik Buterin into the non-existent entity to revive the Wrapped Ethereum Foundation (WEF). The controversial tweet was triggered by a Twitter user, with the handle name @0xCygaar. This Twitter handle received more than a thousand likes on a post that claimed that WETH is more likely to go insolvent without adequately explaining that they were being sarcastic.

This led to other famous crypto industry giants hyping up the false news, with Anthony Sassano, who is also the co-founder of EthHub saying that WETH was in for a massive breakdown. The user had to later explain that the post was merely a harmless joke after going through several comments on their tweet by anxious users. It is practically impossible for WETH to go insolvent as it will always be supported one-to-one by the second largest cryptocurrency, thanks to its intrinsic machinery.

The Tron Founder Justin Sun had also recently conveyed his plans to purchase the assets of the now-crashed FTX exchange. Initially, he was trying to help the platform as the infamous Sam-Bankman Fried was maniacally seeking a fresh inflow of cash.

The markets, however, witnessed a significant sell-off due to the chaos created by the tweets regarding WETH’s insolvency. Bitcoin and Ethereum prices dropped by more than three and four percent respectively. BTC’s price is presently at $16.5K support and is being exchanged at $16,203. ETH, on the other hand, has fallen under $1,200 and is currently trading at $1,172.

Recently, Sun’s company Tron made news for the increased token price to more than 140% on the cryptocurrency exchange FTX. Its native token, called TRX, skyrocketed from 12 cents to 29 cents after Tron founder Justin Sun decided to shift Tron-based assets from FTX to external wallets.

TRX, about a fortnight ago, increased its price to over 4000% for some time due to speculations around Tron-based assets being redeemed on a one-on-one basis by Sun. However, the massive increase spontaneously plunged to zero soon after.

Altcoin News, Blockchain News, Cryptocurrency news, Ethereum News, News
Sanaa Sharma
Author Sanaa Sharma

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.

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