Just recently, the crypto market was shocked by the collapse of FTX, one of crypto exchange platforms. That must hit you with a big question: then how about weth crypto price? Of course, the collapse of such a huge crypto exchange platform must have a massive impact on traders who had been using their services. There were even rumors speculating that there was less likely possibility for a full rescue package to be issued. It means that all the users had to bear with losing all their assets along with the platform’s collapse. After all that chaos, which coin should you invest in from now on? Is there any safer option?
The Wrapped Coins
What is wETH? You should have known about ETH as the second largest market value, and this is simply the “wrapped” version. To put it simply, the coin wETH has exactly the same value as Ethereum, it just uses the ERC-20 token standard implementations. The ERC-20 itself is closely related to the Ethereum based projects. There have been a lot of them that utilize ERC-20 implementations as their technical standards because of its flexibility, practicality, and transparency. However, since Ethereum was created far earlier, the rule doesn’t apply to the coin. Meanwhile, most crypto exchanges, wallets, and DApps have been designed to support ERC-20 tokens natively. And most of all, only ERC-20 tokens are tradeable with one another. It means that users will find it difficult to perform transactions with Ether. wETH is created in order to bridge the gap between Ether and ERC-20 coins. With the wrapping in effect, traders will be able to use the coin on the other different blockchain standard systems. Let’s take an example of trading Bitcoin with Ether. Since the two utilize different systems, you won’t be able to use one coin in another system. The wrapping functions to apply the other’s token standard onto the coin. You can rest assured because wETH crypto price will be on the same value as the original Ether.
Is It Safe?
It is quite easy to convert coins into the wrapped ones(ETH to wETH). You can do it via smart contract or using the crypto wallet that supports both systems. They are only a few steps away and you will be ready to trade with either the wETH or ETH. The same process also applies in unwrapping the coins. You’d just have to make sure that you are converting into the desired value. However, there is one thing you should be careful with while playing with these wrapping and unwrapping procedures. The co-creator of Ethereum himself talked about how the wrapped assets are sensitive to centralization. This is because the wrapping process has to be done through a central program and is prone to abuse and manipulation. Rather than worrying about weth crypto price, you can try to take a look at crypto launchpads, one of them is kommunitas.net. The safest choice is to invest into the coin before it is launched and make profit as its market value grows in the future.