Justin Sun and Vitalik Buterin will “rescue” Wrapped ETH (WETH).
They are investing in Wrapped ETH (WETH) as the token has lost its ETH peg.
Tron founder Justin Sun said he and Ethereum creator Vitalik Buterin are investing $2 billion in The Wrapped Ethereum Foundation (WEF) to recoup funds lost after Wrapped ETH (WETH) lost its pegging to the ETH token.
However, the statement became part of the WETH bankruptcy joke. Sun tweeted that he had a discussion with Vitalik Buterin and decided to invest $2 billion. Sun joked that WETH lost its peg and the WEF CEO raised $2 billion to fix it.
“As a humble member of the crypto industry, I have personally discussed [WETH] with my best friend Vitalik Buterin and together we will invest $2 billion in WEF to recover all funds,” Sun wrote.
Sun’s announcement comes amid news that WETH has divested itself from ETH, losing its $1 peg.
The cryptocurrency market has experienced a massive sell-off amid the WETH insolvency scandal. The main cryptocurrencies, Bitcoin and Ethereum, fell by more than 3% and 4%, respectively. BTC price breaks the $16,500 support and trades at $16,203. At the same time, ETH price falls below $1,200 and is currently trading at $1,172.
Top altcoins including BNB, XRP, DOGE, ADA and others have also dropped 3-4% in the last 24 hours.
Earlier in November, the stablecoin of the TRON project (USDD) lost its peg to the US dollar. Sun’s stablecoin unpegged the US dollar and fell to $0.970. A few days earlier, a whale had exchanged 4.49 million USDD for 4.46 million USDT at odds of 0.9935. After that, the stablecoin began to lose its peg to the dollar. The other whale then exchanged 6.65 million USDD for 6.52 million USDC at odds of 0.9799.
