Put plainly, W-ETH is “wrapped ETH” but let’s start by introducing the players.
FIRST, THERE’S ETHER TOKEN
Ether or ETH is the native currency built on the Ethereum blockchain.
SECOND, THERE ARE ALT TOKENS
When a dApp (decentralized app) is built off of the Ethereum Blockchain it usually implements it’s own form of Token. Think Augur’s REP Token, or Bancor’s BNT Token.
FINALLY THE ERC-20 STANDARD
ERC20 is a standard developed after the release of ETH that defines how tokens are transferred and how to keep a consistent record of those transfers among tokens in the Ethereum Network.
WHY YOU NEED W-ETH
ETH DOESN’T CONFORM TO ITS OWN ERC20 STANDARD.
As mentioned above, ETH was the proto-token of the Ethereum Alt tokens, which means it was built before the ERC20 standard existed.
WRAPPING ETH ALLOWS YOU TO TRADE DIRECTLY WITH ALT TOKENS.
The reason you need W-ETH is to be able to trade ETH for other ERC20 tokens on decentralized platforms like Radar Relay. Because decentralized platforms running on Ethereum use smart contracts to facilitate trades directly between users, every user needs to have the same standardized format for every token they trade. This ensures tokens don’t get lost in translation.
READY TO WRAP?
SO THIS IS AWKWARD…YOU DON’T ACTUALLY WRAP ANYTHING.
When you “wrap” ETH, you aren’t really wrapping so much as trading via a smart contract for an equal token called W-ETH. If you want to get plain ETH back you need to “unwrap” it. AKA trade it back for plain ETH.
WHATEVER, JUST GIVE ME THE W-ETH!
Go to Radar Relay or 0x OTC to use their interface. Once you have the WETH you can freely trade with anyone holding an ERC-20 token.
THE FUTURE OF W-ETH
HOPEFULLY, THERE’S NO FUTURE FOR W-ETH.
Steps are being taken to update the ETH codebase to make it compliant with it’s own ERC20 standards. Weird, we know. Additionally, ERC20 may be replaced by other standards as problems and solutions arise. There’s already a ERC223 in the works.
Put your WETH to work on Radar Relay.
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Following yesterday’s irrational FUD fuelled SEC selloff, crypto markets have been stable and have not plunged any further. Total market capitalization has remained above $210 billion but is still teetering on the edge and is a quarter of what it was this time eight months ago.
Bitcoin has held key support at $6,400 and has managed to climb a little this Friday, rising 1.7% to $6,550. The next level of resistance for BTC is around the $6,600 price. Ethereum is still in the doldrums and has not moved from yesterday’s level of $275. ETH inactivity could be a result of the decline in ERC20 tokens based on the platform, many of which are at their lowest levels for over a year.
Altcoins are generally in the green at the moment but gains are marginal and things have not moved much over the past 24 hours. The top ten is flat with only EOS and Cardano making more than 2.5% on the day. The top twenty is showing a little more progress with Tron leading at the moment on a 5% climb to $0.021. Iota, Neo and Nem are all at least 3% up on the day but they are still at very low levels.
Lisk is making the biggest move in the top thirty with a 15.5% jump to $4.67. Volume has almost doubled to $11 million as mainnet launch on August 29 approaches. Lisk is one of the few altcoins that is up on the week, 17% from $3.98 this time last Friday. Against BTC Lisk is up 13.5% to 71370 satoshis on the day.
Other altcoins making big moves today in the top one hundred include Theta Token pumping 45% as it gets listed on Bithumb. CyberMiles, and Gas, are also doing well, up 25-30%. On the other end of the scale RChain and Aurora are still falling, both losing over 5% at the moment.
Total crypto market capitalization has nudged up 1.4% on the day to $211 billion. The SEC prompted dump did not last long however a real rally back to last month’s levels has yet to be initiated. Crypto markets are still wallowing in the digital mud at their lowest levels since early November last year.
More on Lisk can be found here: https://lisk.io/
FOMO Moments is a section that takes a daily look at the top 25 altcoins during the current trading session and analyses the best performing ones, looking for trends and possible fundamentals.
In today’s crypto market drop-off, a majority of cryptocurrencies posted horrendous losses, including Ethereum, which fell further than many of its altcoin brethren. This came to the surprise of many, as Ethereum is normally a force to be reckoned with in ‘normal’ market conditions.
Ethereum Moves Under $300 For The First Time In 9 Months
Over its relatively short history, Ethereum has grown to become the 2nd most valuable cryptocurrency, becoming the platform of choice for cryptocurrency projects, and dApp developers. Despite the fact that Ethereum has cemented itself as a leader in this flowering market, this has not made it vulnerable to devastating price crashes, such as the one seen on Monday.
As users turned on their computers on Monday morning, it quickly became apparent that something was amok, with the market reestablishing year-to-date lows. While Bitcoin already had it worse enough, it clearly became apparent that some cryptocurrencies were under-performing others. As the day continued, market conditions only worsened, with altcoins extending losses even further. Through all this, a common theme remained — Ethereum posted the highest percentage losses out of all of the cryptos in the top 10.
At the time of writing, Ethereum sits at a dismal $267, down 17% from today’s high of $320. This is the first time ETH has ventured under $300 since November 2017, which was when the Bitcoin boom was just ramping up, and altcoins were starting to show some strength.
Over the past week, Ethereum has fallen by over 35%, while Bitcoin has ‘only’ posted a loss of 14%. This devastating move lower has rightfully led some to ask, “Why is the price of ETH performing so poorly?”
Investors Try To Reason Why ETH Is Capitulating So Heavily
According to Bloomberg, a primary catalyst for this drastic decline is the high levels of selling pressure placed upon Ethereum by ICOs, as projects seek to liquidate their crypto war chests for fiat. According to Biswa Das, a founding partner at crypto hedge fund Bloomwater Capital, projects are cashing out to cover operational expenses and in fear that the market will continue lower. Das stated:
“These startups are raising a lot of funds but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market. It was fine last year but right now the market is so fragile that it causes a lot of pressure.”
Das’ suspicions were seemingly corroborated by crypto analytics firm Santiment, who suggests that startups have spent upwards of 110,000 ETH over the past 30 days.
CNBC’s coverage of Ethereum’s tumble seems to confirm much of the same, with Meltem Demirors of Coinshares discussing this occurrence with Fast Money panelists. Demirors noted:
“Ethereum starting this narrative of being a decentralized computer, it shifted over to smart contracts as enterprises when getting more interested in this technology and then it became a substrate for ICOs to raise money with… So they held a lot of ether in their treasury… I think this is really what our ecosystem is struggling with — how do we allocate out of ETH into our assets that preserve value long term, and what should those be.”
While many investors believe that the worse has already arrived, Spencer Bogart of Blockchain Capital says “the pain” may be far from over, as there are still hundreds of thousands, if not millions of ETH that are ready to be sold en-masse on spot market exchanges.
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Tags: altcoin, cryptocurrency, cryptocurrency markets, ETH, ethereum, Ethereum (ETH), ethereum price, ICO, markets